US District court grants an anti-suit injunction to NextEra and severely criticises Spain’s stubborn defence. A light at the end of the tunnel in this award enforcement odyssey? (NextEra Energy Global Holdings BV and Nextera Energy Spain Holdings BV v the Kingdom of Spain)

Article summary

Arbitration analysis: Dutch companies NextEra Energy Global Holdings BV and NextEra Energy Spain Holdings BV (NextEra) invested in Spanish solar energy plants benefiting from the then favourable economic tariffs for investors. These projects were hindered by dramatic regulatory changes stressed by EU authorities, leading Spain to revoke the incentives regime. Under the Energy Charter Treaty (ECT), NextEra sought redress by requesting arbitration before the International Centre for Settlement of Investment Disputes (ICSID), winning a €291m award (ICSID Award). Although the ICSID tribunal ruled that Spain had breached the ECT, the country has refused to pay, supported mainly by the Achmea and Micula judgments of the Court of Justice of the European Union (CJEU) that declared intra-EU arbitration incompatible with the EU laws, forcing NextEra to seek enforcement in...