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Greentech and Novenergia v. Italy

Jurisdiction: Stockholm Chamber of Commerce


Principle law(s): Law no. 116, ratifying with amendments the Law Decree no. 91 of 24 June 2014 on 'Urgent provisions for the agricultural sector, environment, company development and, inter alia, reduction of energy bills'


Side A: reentech and Novenergia (Corporation)


Side B: Italy (Government)


Core objectives: Claims arising out of a series of governmental decrees to prematurely cut tariff incentives for photovoltaic plants.


Summary
In 2015, two companies based in Denmark and Luxembourg invested in photovoltaic (PV) plants across Italy. The plants benefited from a feed-in tariff scheme, which was originally intended to run for a period of 20 years from each PV plant's connection to the grid. In 2015, a new Decree Law came into force which modified the amount and duration of incentive tariffs. The claimants alleged that this constituted a violation of the fair and equal treatment clause of the Energy Charter Treaty and claimed compensation. 

In 2018 the Arbitral Tribunal found that Italy had breached the relevant provisions of the Charter and awarded the companies compensation of $13.6 million.
Case documents

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