Spain pays €23.5 million in damages to JGC after Energy Charter Treaty arbitration

Compass Lexecon advised JGC Holdings Corporation during arbitration proceedings against the Kingdom of Spain. JGC claimed damages suffered on its investments in solar plants in Spain, following the country’s changes in the regulatory regime for renewable energy subsidies in 2013. In June 2025, JGC was the first claimant to receive its awarded damages, opening the way for enforcement of further Energy Charter Treaty awards against the Kingdom of Spain.

Situation

In 2013, Spain started modifications in its regulatory and economic regime for renewable energy projects. As a result, several companies initiated damages claims due to the negative economic impact on their investment that resulted from the change in regulatory regime. JGC had invested in two concentrated solar power (‘CSP’) plants in the Andalusia region in Spain in 2010. In 2015, JGC initiated arbitration proceedings against the Kingdom of Spain arguing that it had breached its obligation of ‘Fair and Equitable Treatment’ under Article 10 of the Energy Charter Treaty.

Our Role

Compass Lexecon was retained by JGC to serve as regulatory and quantum experts in the Energy Charter Treaty arbitration against the Kingdom of Spain, held under ICSID rules (ICSID case no. ARB/15/27). We submitted two expert reports in 2016 and 2018, as well as a joint memorandum in 2021. These reports focused on the appropriate methodology to estimate past and current damages, including sensitivity analyses. Our experts also testified as economic expert witnesses for JGC during the hearings in 2021.

Outcome

The Tribunal awarded €23.5 million in damages to JGC. This award amount has now, in 2025, been paid by the Spanish government to the award-rights-holder, Blasket Renewable Investments: the first payment related to Spain’s rollback of renewable energy investment incentives.

Team

Compass Lexecon economists Jorge Padilla, Alejandro Requejo and Antón García served as expert witnesses for JGC in the arbitration proceedings related to Liability and Quantum and were assisted by Rui Pratinha, Ria Abichandani and David Jubete.

The Compass Lexecon team worked with JGC’s counsel from Cuatrecasas Gonçalves Pereira.