A federal court in Washington has dealt another blow to Spain's position in the protracted dispute over unpaid renewable energy contracts . Two rulings by the District Court of Columbia clear the way for the enforcement of ICSID arbitration awards for nearly €200 million related to solar investments in Andalusia.
The rulings, issued on August 12, dismiss the procedural and European law objections raised by the Spanish state and strengthen the possibility of asset seizures in the United States . Spain has the largest number of pending international arbitration awards related to retroactive cuts to clean energy subsidies, increasing the pressure to find solutions.
Two rulings in Washington that pave the way for enforcing awards
In the first proceeding, the federal court rejected Spain's request to dismiss RREEF 's claim and upheld the validity of the 2019 ICSID award . RREEF was awarded €59,6 million plus € 13,9 million in late payment interest; the case is being handled by Blasket Renewable Investments , which acquired the rights to the claim.
In a parallel case, the same court dismissed Spain's objections in the Infrastructure Services (Antin) case , also concerning two solar plants in Andalusia. The award, issued in 2018 , sets compensation at €101 million and an additional €24,3 million in interest. The sum of both awards is around € 200 million , with interest and costs continuing to accrue as long as payment remains outstanding.
Both rulings make it clear that, in accordance with US law incorporating the ICSID Convention, courts must give “full faith and credit” to the awards, enabling their enforcement as if they were final judgments. This allows creditors to request attachments of assets in US territory, increasing their chances of recovery.
Spain's arguments and the US judge's response
The government argued that the awards should not be enforced due to the prohibition on intra-EU arbitration and because the payment of compensation would constitute "state aid" not authorized by Brussels. The judge flatly rejected this argument, noting that such arguments had already been debated and dismissed in the ICSID arbitration itself, and therefore did not prevent enforcement in the United States.
Furthermore, the ruling precluded defenses such as sovereign immunity or forum non conveniens , in line with precedents like NextEra and 9Ren . The conclusion is clear: the federal law implementing the ICSID Convention mandates the recognition and enforcement of awards, regardless of debates on EU law.
- Intra-EU and inter-EU arguments State aid have already been rejected in the arbitration proceedings.
- The ICSID Convention, incorporated into US law, requires giving full faith and credit to the awards.
- Precedents such as NextEra y 9 Pure limit immunity and forum not conveniens at this stage of execution.
Foreclosures, exposed assets and the cost of the conflict
The refusal to pay has triggered actual or precautionary seizures in several countries. In Belgium , the courts seized more than 80 million euros in revenue channeled through Eurocontrol and managed by ENAIRE . Similar measures have been adopted in the United Kingdom and Australia , also affecting public assets such as the headquarters of the Cervantes Institute.
The creditor companies have reiterated their willingness to reach an agreement, as happened in June with the payment of the JGC Corporation award , for 32 million, but warn that if the defaults persist , they will promote new seizures in the coming weeks, including actions in the United States.
Spain has the highest number of unfulfilled international arbitration awards related to renewable energy: there are 26 final judgments with an outstanding principal of €1.492,7 million . Adding interest and legal costs (approximately €385,1 million), the total amount approaches € 1.870 million , according to figures released by those affected.
Experts and analysts warn that this strategy increases financial costs and could damage the reputation of Spanish companies abroad. Market sectors suggest the need to reach settlement agreements with creditors to reduce the risk of further international enforcement actions.
