EU opens probe into Spain payment to Japan's JGC in case over renewable subsidies

The European Commission has launched an investigation to determine if an arbitration ruling requiring Spain to compensate Japanese firm JGC Holdings €23.5 million ($27.04 million) for a renewable energy subsidy scheme breach EU state aid regulations. In 2021, an arbitration court ordered Spain to pay the compensation to JGC after modifications to a 2007 scheme supporting renewable power projects.

Spain transferred a portion of the award to Blasket Renewables Investment, a U.S. fund assigned the rights to the award. The Commission's preliminary assessment is that the arbitration award qualifies as state aid, providing JGC and Blasket with an unfair advantage.