Masdar sues Spain over renewable energy reforms
Madrid estimates that the reforms will save it $2.4bn
The United Arab Emirates' state-owned renewable energy firm Masdar has filed a legal complaint against Spain before the International Centre for Settlement of Investment Disputes (ICSID) over changes to renewable energy rules, the Reuters news agency reported.
The Spanish government has passed a series of measures over the past two years that have cut and, in some cases, even eliminated subsidies on renewable energy assets and capped profits. Madrid estimates that the reforms will save it €1.75 billion ($2.4 billion)
Critics of the new laws, aimed at mending years of policy that has created a 30 billion euro ($40.8 billion) electricity tariff deficit caused by a gap in regulated prices and costs, say they renege on the original terms of firm contracts.
"Retroactive changes to Spain's regulatory framework have compromised investments made by Masdar Solar & Wind Coöperatief U.A. within the country. These recent regulatory changes negatively impacted the investments made by the company and many other international entities," a spokesman for Masdar Solar & Wind Coöperatief U.A, a Dutch subsidiary of the UAE company, was quoted as saying.