In the context of international arbitration, states can submit their disputes with other states or companies to an arbitral tribunal. Once this award has been made, the possibility remains, although restricted, that this award can be challenged in court and that therefore its execution may be interrupted. Regarding this, Law360 reports that a group of investors in renewable energy and private equity funds from France and Luxembourg are raising their voices to prevent Spain from challenging a binding arbitration award.
The companies in question are Cube Infrastructure Fund SICAV of Luxembourg and Demeter Partners SA of France. These, along with other private representatives, have sought to thwart the argument that Spain has used to avoid the execution of numerous arbitration awards given its new position of not being in favor of incentives for renewable energy. Last Monday, the investors insisted that the federal court has jurisdiction to hear their case.
The two companies mentioned and others began arbitration in April 2015 after Spain revoked the incentives for many hydrological and solar plants in which they invested between 2008 and 2012. This places them among the dozens of investors in the Union. European who have sought the same relief for years.