Introduction and Procedural Posture

This document is a Request for Arbitration filed with the International Centre for Settlement of Investment Disputes (ICSID) by two groups of German investors, The DSG Deutsche Solargesellschaft Group and The Tauber Solar Investors Group (collectively, the Claimants), against the Kingdom of Spain. The Claimants initiate proceedings pursuant to Article 26 of the Energy Charter Treaty (ECT) and Article 25 of the ICSID Convention, seeking redress for alleged breaches of Spain's international obligations concerning their investments in the Spanish renewable energy sector.

Summary of the Dispute

The dispute arises from Spain's substantial modification and eventual abrogation of its regulatory framework for renewable energy, particularly concerning photovoltaic (PV) power generation. The Claimants assert that they invested over €130 million in developing and acquiring numerous PV plants in Spain in direct reliance on the stable and incentivized feed-in tariff (FiT) regime established by Royal Decree 661/2007 and Royal Decree 1578/2008. This regime, which the Claimants argue was actively promoted by Spain to attract foreign investment, guaranteed specific, long-term remuneration for electricity produced.

The Request alleges that, beginning in 2010, Spain enacted a series of adverse legislative measures that fundamentally altered the economics of the Claimants' investments. These measures included, inter alia, limiting the operating hours eligible for the FiT, imposing a 7% tax on all revenues from electricity generation, and ultimately, retroactively abolishing the entire FiT system through Royal Decree-Law 9/2013. The original regime was replaced with a new remuneration scheme based on a unilaterally defined "reasonable rate of return," which significantly reduced the value and profitability of the Claimants' investments.

Legal Basis for Claims and Jurisdiction

The Claimants contend that Spain's actions constitute a wrongful repudiation of the legal and economic guarantees upon which their investments were based. They frame these actions as breaches of Spain's obligations under Part III of the ECT. Specifically, the claims are founded on violations of Article 10(1) of the ECT, which mandates fair and equitable treatment (FET), constant protection and security, and proscribes unreasonable or discriminatory measures. The Claimants also allege that the complete overhaul of the regulatory framework amounts to an unlawful expropriation of their investments, or a measure having an equivalent effect, in breach of Article 13 of the ECT.

The Request asserts that all jurisdictional requirements under the ECT and the ICSID Convention are met. It confirms that the Claimants are qualifying "Investors" of Germany, a Contracting Party to the ECT, and that their holdings constitute a covered "Investment" in Spain. It further notes that attempts to settle the dispute amicably, as required by the ECT, were unsuccessful.

Relief Sought

The Claimants request that the arbitral tribunal declare that it has jurisdiction over the dispute and that Spain has violated its obligations under the ECT and international law. They seek an award of full compensation for all damages suffered, including sums invested, lost profits, and consequential damages. Additionally, the Claimants request the recovery of all costs associated with the arbitration, including legal fees, and an award of pre- and post-award compound interest.