Antin wins EUR112 million hollow victory in Spanish CSP

Antin Infrastructure Partners has been awarded EUR112 million (US$125.5 million) in compensation from Spain under the Energy Charter Treaty (ECT) after the conclusion of the legal battle over two concentrating solar power plants in Granada that the fund acquired in 2011.

The company has invested in the concentrated solar plants (CSP) sector in 2011 because it regarded it as 'more sheltered from regulatory change' than the solar photovoltaic projects, which had been damaged by tariff cuts in 2010. 

The decision by the Washington-based International Centre for Settlement of Investment Disputes relates to the investments made by Antin and Deutsche Asset Management in 2011 in the Andasol I and II concentrated solar power plants, both generating 50MW capacity. DWS is pursuing its case separately through the ICSID.

However, the investment turned sour in 2012, when the Spanish government enacted further retroactive cuts to the subsidies paid to renewable energy assets. The government had, in the previous two years, already enacted cuts to solar PV and wind, as it sought to slash Spain’s electricity tariff deficit. An additional round of cuts was made in 2013.

ICSID rulings cannot be appealed but the Spanish government can request an annulment, although it is not thought to be considering this. The Antin award is the third related to Spanish solar cuts following an award to EISER Infrastructure last year and Masdar in May, while investment fund Novenergia achieved a positive settlement in a separate court. However, the savings the Spanish government realized are understood to greatly exceed the compensation awarded thus far.