Charanne and Construction Investments v. SpainCharanne B.V. and Construction Investments S.a.r.l. v. Spain (SCC Case No. 062/2012)

A Dutch company and a Luxembourg company (Claimants) had jointly invested in solar generation based on an incentive program by the Spanish government (Respondent). Subsequently to the investment, Spain amended the incentive program to limit the amount of energy that could be supplied and included a new charge for grid access. Claimants argued before the Stockholm Chamber of Commerce (SCC) panel seated in Madrid, Spain that, under the Energy Charter Treaty, these amendments indirectly expropriated part of the value of their investment, and that Spain had violated the fair and equitable treatment standard. In 2016, the tribunal denied these claims. It held that, despite the reduced rate of return for investors, the program had remained in place.