Spanish State to compensate the photovoltaic investors harmed by the Royal Decree-Law 1/2012

Spanish State to compensate the photovoltaic investors harmed by the Royal Decree-Law 1/2012

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EVOLUTIZA Lawyers & Tax gets the first and only judgment so far by which the photovoltaic promoters must be compensated with promotions expenses and costs of the claims.

On 29 April 2016 the Supreme Court announced several judgments resolving the appeals filed by EVOLUTIZA Lawyers & Tax Advisors in defense of the interests of photovoltaic investors and promoters.

In those judgments the Supreme Court condemned the Spanish State to compensate investors and photovoltaic promoters for expenses and costs incurred in photovoltaic promotions and projects were unable to benefit from the bonuses and incentives contained in Royal Decree 1578/2008, suspended by Royal Decree Law 1/2012 which suppressed pre-allocation of remuneration and economic incentives for new energy production facilities electricity from cogeneration, renewable energy and waste.

The resolutions also condemn the Spanish Administration to pay the costs of the proceedings and claims.

The procedures have been represented by counsel Lourdes Alvarez Laube, director of the area of renewable energy, and directed by Antonio Cuenca Molina, managing partner of the firm in infrastructure and energy.

Case History

In 2012, following the publication of Royal Decree Law 1/2012 the firm EVOLUTIZA Lawyers & Tax Advisors conducted various property claims to the Spanish Administration for expenses and costs incurred by developers and photovoltaic investors who could not see materialized their projects.

The Cabinet agreed to dismiss the claims on April 25, 2014.

The firm then began the process of appeal to the Supreme Court and the Spanish Administration opposed through the State Barrister.

The approach put forward by the firm was the request of the responsibility of government based on arts. 139 et seq of Law 30/1992 on the basis of which “Individuals are entitled to be indemnified by the relevant public authorities of any harm they suffer in any of their property and rights, except in cases of force majeure, provided that the injury is a result of normal or abnormal functioning of public services’ understanding that in this line, Royal Decree 1578/2008 created a solid expectations for the operators of installations that obtained the registration in the register of pre-allocation and consequent remuneration of its energy, which was thwarted by the Royal Decree Law 1/2012.

The Spanish Administration represented by the State Barrister denied the existence of compensable damage considering essentially that fit not to mention unlawfulness of damage to sight the obvious regulatory risk of photovoltaic technology and regulatory power of government.

The Supreme Court, through its judgments has determined that “it was the Royal Decree of 2008 which created a solid expectations for the operators of installations that would obtain the registration and the consequent remuneration of their energy” and that “the regulatory change that marked the Royal Decree-law 1/2012 was surprising, breaking the principle of legitimate expectations”, proceeding to condemn the Administration to reimburse the expenses and costs incurred in the promotions were frustrated, because “no could be much less infer, even alleged that the regulatory risk of the sector could lead to his suspension just three and a half years after implantation, precisely because the government, in approving the regulation of 2008, had considered all the circumstances that recipients of the standard could consider to take the appropriate business decision to project a photovoltaic installation and apply for registration in the registry section created by repeated Royal Decree of 2008″.

Assessment of the Judgment

These statements represent the first and only to date in which the Spanish Administration has been ordered to compensate the photovoltaic developers and investors the entry into force of Royal Decree Law 1/2012.

The statements also involve a significant upon conviction Spanish Administration to payment of the costs incurred by developers and investors in the litigation that followed made.

The firm

EVOLUTIZA Lawyers & Tax Advisors is a Spanish firm specialized in regulatory and administrative law firm and has been specializing in renewable energy since 2006, which has placed the office as one of the companies of reference in the photovoltaic industry, being the first and only firm to date that has achieved the Spanish Administration be ordered to compensate the developers and photovoltaic investors who were harmed by the entry into force of Royal Decree 1/2012.

Remarkably, both in this sector and in other regulated sectors, the firm has obtained favorable rulings before the Administration and the State Barrister in all proceedings in which he has participated since 2006, placing the firm as reference and leader in regulatory and administrative matters.

For over 30 years we have helped companies to do business in Spain and Latin America. For us you are not one more, we create the solution for you. We advise companies on corporate law, mergers and acquisitions, financial law, contracts, taxation, transfer pricing, intellectual property and labor law.

We are currently in Malaga, Madrid, Chile, Peru, El Salvador, United Kingdom and Switzerland offering quick solutions and business advice. Currently we give our service in more than 50 countries. In EVOLUTIZA Lawyers & Tax Advisors working for your business is the key to big puzzle piece.

Call us at 0034 911 697 113 or write to info@evolutiza.com.es

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