Debevoise & Plimpton LLP has represented Eiser Infrastructure Limited and Energía Solar Luxembourg S.à r.l. (together, “Eiser”) in major victory in the long-running ICSID proceedings against the Kingdom of Spain (“Spain”).

Eiser was among numerous international investors that committed substantial capital to Spain’s renewable energy sector, relying on Spain’s feed-in tariff (“FIT”) regime. Eiser’s investments included the development of two concentrated solar power plants, on the expectation that the stability and longevity of the FIT regime would allow it to recover its capital and earn a return on its investment over the plants’ full operating life.

Spain’s revocation of the FIT regime in 2013 triggered the largest wave of investment arbitration proceedings in the history of the Energy Charter Treaty (“ECT”).

Eiser commenced arbitration proceedings against Spain in 2013, alleging multiple breaches of the ECT. In 2017, an arbitral tribunal found in Eiser’s favor, awarding approximately €130 million in damages. However, that award was annulled in 2020, and so Eiser re-filed its claims, pursuant to Article 52(6) of the ICSID Convention.

In a majority decision, the ICSID tribunal has now found in Eiser’s favour, concluding that Spain went beyond legitimate regulatory adjustment and breached the ECT’s fair and equitable treatment standard. It further held that Spain’s conduct was unreasonable, disproportionate, and inconsistent with investors’ legitimate expectations.

Significantly, the tribunal awarded Eiser €262 million in damages — more than twice the amount awarded in the first arbitration.

The Debevoise team representing Eiser was led by partners Jeffrey Sullivan KC and Samantha Rowe, and included associates Sonja Sreckovic, Svetlana Portman and Diana Moise.