Romania has won an international arbitration case brought by investors in renewable energy, avoiding EUR 256 million in claimed damages. The International Centre for Settlement of Investment Disputes (ICSID) ruled on January 16, 2025, that Romania did not violate guarantees under the Energy Charter Treaty.

The Arbitral Tribunal also ordered the claimants, a group comprising 28 individuals and 16 companies, to pay Romania EUR 1.74 million and USD 218,458 to cover 50% of the country's legal and arbitration costs, according to the Finance Ministry.

The case centered on changes to Romania's renewable energy support scheme, which investors argued undermined their photovoltaic projects. The claimants, who developed 31 solar parks across Romania, asserted that legislative amendments between 2014 and 2018 caused significant financial losses. They alleged Romania breached the treaty's provisions on fair treatment and protection against expropriation.

Key changes cited by investors included the elimination of progressively increasing annual quotas, a reduction in the validity period of green certificates from 16 months to 12 months, cuts to renewable energy quotas, and the price of green certificates from EUR 55 to EUR 35.

Romania argued it acted within its rights to adjust renewable energy policies, defending the changes as necessary under national legislation. The ICSID upheld Romania's position, rejecting the claimants' allegations and confirming the state's compliance with treaty obligations.

The dispute arose under the Energy Charter Treaty, ratified by Romania in 1997, which provides a legal framework for energy cooperation and investment.

iulian@romania-insider.com

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