The European Commission has initiated an in-depth investigation to assess whether an arbitration award requiring Spain to compensate JGC Holdings Corporation for changes to its renewable energy support scheme violates EU State aid rules. The award, totaling €23.5 million plus interest, was issued after Spain modified its 2007 renewable electricity support measure. Spain notified the Commission in 2021, but the initial scheme was never approved under EU State aid rules. The Commission’s preliminary view is that the award constitutes State aid, granting JGC benefits equivalent to the unnotified 2007 scheme. A US fund, Blasket Renewables, also received compensation after acquiring rights to the award. The Commission will examine whether the measure breaches EU treaties, undermines competition, or violates State aid guidelines. The investigation allows Spain and third parties to submit comments, with no prejudgment of outcomes.
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