International solar arbitrations not a threat but reality
Prague/Brussels May 9, 2012 – On behalf of eleven IPVIC members, Frank Schulte, the association’s Secretary General, informed the Czech Ministry of Finance of concrete legal steps to commence international arbitration proceedings against the Czech Republic. These are based on the grounds of severe financial damage caused to foreign investors by unfair, retroactive legislation imposing a special levy of 26% on the solar installations’ revenue. The formal arbitration filing is expected within six to eight weeks.
“The grace periods are over for all of the claimants,” said Frank Schulte. “Through recent statements by government officials and the quasi-independent ERO it has also become obvious that the Czech state, contrary to international trends, intends to further hamper the operation and development of both existing and new solar installations. It does so regardless of severe damages caused to individuals and companies who committed significant financial means into projects fully corresponding with Czech legislation valid at the time of bona fide investments,” Schulte elaborated.
The power plants of the international investors entering into arbitration have a combined installed capacity of 80 MWp. The precise amount of damages for the arbitration proceedings will be calculated by an independent valuation expert. The claims are based on bilateral treaties on investment protection.
International PhotoVoltaic Investors Club (IPVIC) is an association of international and domestic investors in photovoltaic energy. The membership consists among others of Czech-based Ren Power, German private investor Milos Schubert, German Voltaic Network GmbH and Antaris Solar, Luxembourg-based company Radiance Energy Holding and I.C.W. Europe Investments Ltd. from the UK. The installed capacity of their solar projects is 115 MWp. IPVIC’s positions are available at www.ipvic.net.