Barbora Vlachová

Photovoltaic Power Plants and the Threat of International Arbitration

Jurisprudence 2/2014 Section: Articles Page: 35-41

Keywords: photovoltaic energy, arbitration, power plants

Abstract: There has been very turbulent development in support of solar energy in recent years in the Czech Republic. State support caused a significant growth of photovoltaic plants, introducing a number of negative effects. The legislators responded to the situation by limiting the support, particularly through additional tax duties. Owners of photovoltaic power plants contested established measures by all available means. So far, they have not achieved much succes in proceedings before courts, however the recent decision of the Supreme Administrative Court changed the situation. Foreign owners have the ability to enforce their rights through international investment arbitration, and some of them have already announced the initiation of proceedings against the Czech Republic.