The situation of the renewable energy sector in Galicia after the electrical reform

Abstract

Recently in Spain a deep legislative reform of the electrical sector has been carried out. This fact has considerably reduced state support for the renewable energy sector; a sector that has a great importance in Galicia. For this reason, renewable energy producers claimed damages caused by this legislative change against the Spanish State.

The claims were made before national and international courts. The former is rejecting these claims on the basis of the concept of regulatory risk. Meanwhile, with regard to the latter, ICSID has recently decided the first controversy in this respect, failing in favour of investors.

Keywords:

Renewable energy, electrical reform, Galicia, electric auctions.