---
title: "Spain cannot claim state immunity in UK renewable energy incentives dispute"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/277760396.md"
description: "Spain cannot claim state immunity in a dispute over renewable energy incentives, as ruled by the UK Supreme Court. The court upheld a multimillion-euro award to Infrastructure Services Luxembourg and Energia Termosolar, who had invested in Spain's renewable energy sector. Spain's argument for sovereign immunity was rejected, affirming that it agreed to the jurisdiction of English courts under the ICSID Convention. The award, originally 101 million euros, has grown to approximately 120 million euros with interest. The ruling also noted that states can still claim immunity regarding the execution of arbitration awards against state property."
datetime: "2026-03-04T10:06:43.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/277760396.md)
  - [en](https://longbridge.com/en/news/277760396.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/277760396.md)
---

# Spain cannot claim state immunity in UK renewable energy incentives dispute

LONDON, March 4 (Reuters) - Spain cannot claim immunity to stop a multimillion-euro award over cuts to renewable energy incentives being registered, the United Kingdom's top court ruled on Wednesday, limiting states' ability to claim immunity in disputes with investors.

Infrastructure Services Luxembourg and Energia Termosolar, which had invested in renewable energy facilities in Spain, took Spain to arbitration under the Energy Charter Treaty more than 10 years ago for withdrawing subsidies for renewable energy.

The World Bank's International Centre for Settlement of Investment Disputes (ICSID) awarded Infrastructure Services Luxembourg and Energia Termosolar 101 million euros, with the award later registered at London's High Court.

Spain tried to overturn the registration of the award - which is now worth around 120 million euros with interest - on the grounds it had sovereign immunity, but that argument was rejected by the High Court in 2023 and again on appeal in 2024.

The European country took its case to the Supreme Court, which on Wednesday ruled against Spain, saying that Spain effectively agreed to be subject to the jurisdiction of the English courts when it signed the ICSID Convention.

The Supreme Court said, however, that states can still claim immunity in relation to the execution of an arbitration award against a state's property.

Spain's appeal was heard in December alongside an appeal brought by Zimbabwe in a separate case worth up to $125 million concerning the alleged expropriation of land. Zimbabwe's appeal was also dismissed.

(Reporting by Sam Tobin; Editing by Kate Holton)

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