Long-Running Renewable Energy Dispute
The award’s origins trace back to 2007, when Spain launched generous incentives to attract investment in wind and concentrated solar power. RREEF Infrastructure (G.P.) Ltd. and RREEF Pan-European Infrastructure Two Lux SARL poured more than €300 million into renewable projects.
However, a 2012 policy shift saw Spain scale back and eventually revoke the incentives, citing an urgent need to curb an unsustainable tariff deficit. The ICSID tribunal—led by Alain Pellet, Robert Volterra, and Pedro Nikken—found Spain had breached its treaty obligations by applying changes retroactively and failing to ensure a reasonable return on RREEF’s investments.
The case’s current petitioner, Blasket Renewable Investments LLC, took over the award earlier this year.
Parallel Battles and Broader Implications
The ruling comes a year after the D.C. Circuit confirmed U.S. district courts’ jurisdiction to enforce roughly $395 million in similar arbitral awards against Spain in consolidated cases involving the same renewable energy incentive rollback.
Blasket is represented by Matthew S. Rozen of Gibson Dunn & Crutcher LLP. Spain is represented by Jonathan M. Landy, Benjamin W. Graham, Noah C. McCullough, and Ayoub Ouederni of Williams & Connolly LLP.
With this latest decision, U.S. courts are sending a clear message: international arbitration awards, especially under ICSID, will not be easily undermined by regional treaty disputes.
