- Spain made its first payment from a 2021 World Bank arbitration ruling, settling a €23.5 million award (plus interest) to Blasket Renewable Investments.
- Despite the payment, Spain maintains its legal stance, calling the case “exceptional” and pledging to continue litigating similar claims to defend national interests.
The Spanish government has made its first payment resulting from a 2021 arbitration decision related to its rollback of renewable energy investment incentives. This move sparked numerous legal disputes with international creditors.
On Wednesday, June 5, Blasket Renewable Investments, a US-based entity that filed a claim against Spain, notified a US federal court that the Spanish government had “fully satisfied” a final judgment ordering payment. The court documents did not specify the amount paid. However, earlier filings show that the original World Bank arbitration award, issued in May 2021, amounted to €23.5 million ($26.8 million) and has accrued interest since then.
Matthew D. McGill, Blasket’s lead counsel, said this payment marks the first time investors have received funds under the World Bank arbitration award connected to Spain’s environmental policy changes.
“We welcome the Government of Spain’s decision to pay this award,” McGill stated. “However, the Spanish Government must now recognise that many other arbitration awards entered against it will also be enforced globally—and those, too, must be paid.”
McGill further warned that by resisting its international obligations, Spain risks burdening its taxpayers and discouraging foreign investment, especially in critical sectors like energy and infrastructure.
In response to inquiries from Bloomberg News, a Spanish government spokesperson downplayed the significance of the payment.
“This doesn’t mark a change from Spain’s traditional position,” the spokesperson said, explaining that EU doctrine considers such payouts as potential state aid. However, in this case, the arbitration occurred outside the EU, making the situation “completely exceptional.”
Spain reaffirmed its commitment to defending national interests, noting that it has won nine arbitration cases, achieved three annulments, one voluntary withdrawal, and three dismissals. According to the government, these outcomes have reduced the total claims by 85%.
The dispute dates back to 2007, when Spain introduced generous incentives for renewable energy investment. In 2011, amid efforts to curb its fiscal deficit, the government withdrew these incentives, triggering a wave of lawsuits from aggrieved investors.
Since 2023, Spain has faced default notices and court orders authorising the seizure or freezing of overseas assets, as creditors pushed to enforce the unpaid World Bank awards. Until now, Spain had refused to pay, arguing that such payouts could violate European Union law.