Romania has successfully defended itself in an international arbitration case filed by renewable energy investors, avoiding a claim for 256 million euros in damages. On 16 January, the International Center for Settlement of Investment Disputes (ICSID) ruled that Romania had not violated its commitments under the Energy Charter Treaty.
The Arbitral Tribunal also directed the claimants—28 individuals and 16 companies—to reimburse Romania 1.74 million euros and 218,458 dollars, covering half of the state’s legal and arbitration costs. The dispute arose from amendments to Romania’s renewable energy support scheme, which investors claimed negatively affected their solar projects. The claimants, responsible for developing 31 solar power plants across the country, argued that legislative changes between 2014 and 2018 resulted in significant financial losses. They accused Romania of breaching treaty provisions guaranteeing fair treatment and protection against expropriation.
Key grievances included the removal of gradually increasing annual quotas, a reduction in the validity of green certificates from 16 months to 12 months, cuts to renewable energy quotas, and a drop in the price of green certificates from 55 to 35 euros. Romania defended its right to adapt renewable energy policies, asserting that the changes were necessary under national law. The ICSID sided with Romania, dismissing the investors’ claims and affirming the country’s compliance with treaty obligations.
The dispute arose under the Energy Charter Treaty, which Romania ratified in 1997 and which provides a legal framework for energy cooperation and investment protection.
