Costs for in-house counsel is justified as they participated in the hearing

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Investor was entitled to choose between FiTs and market premium option, and this choice should be honoured in valuation exercise

Valuation date is date of the breach

Duty to compensate under international law exists regardless of current profitability of the investment

No need to decide moot matters

Full tribunal finds that eventual overhaul of regulatory framework breached Article 10(1) ECT

For tribunal majority, early reforms were not marginal in nature, as they impacted elements of the incentives regime on which the claimant had relied when investing

Due diligence was sufficient, especially as project’s lenders conducted their own due diligence

Spain conveyed to CSP investors that regulatory regime would be stable, while future reforms would rely on consultations and consensus, and eschew radical changes

Applicable regime contained guarantee of stability and grandfathering of existing installations, as Spain recognised that stability was key to investors

Date of investment is date when financial commitment became irreversible

FET standard provides for balance of costs and benefits

Specific commitments made directly to the investor are not necessary for legitimate expectations to arise, as long as state gives specific assurances or representations to a particular group of investors

ECT contains standalone stability obligation, which is breached when state changes applicable legal framework “in a radical or fundamental manner”

Diversity of jurisprudence in international investor-state arbitration is a consequence of the structure of the system, but tribunals should aim at consistency

EU law is not applicable to the merits, but, like domestic law, it can be considered as a factual element

Tax carveout’s clawback is inapplicable, as TVPEE qualifies as tax on income

TVPEE qualifies as a tax, as tribunal sees no bad faith behind it

Spain drops EU law objection following CJEU’s opinion on validity of CETA treaty

Background: Japanese investment in joint-venture with Abengoa for the operation of concentrated solar power plant (CSP) projects leads to ECT claim

Provisional measures aimed at halting the German Proceedings are proportionate, especially since Spain declined to provide assurances that it would not subsequently seek injunctive relief

Provisional measures are urgent and necessary since there is a risk that the arbitration tribunal and the German courts will issue conflicting decisions regarding the validity of the arbitration agreement

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