Brattle Principals Dan Harris and Francesco Lo Passo have authored an article on the quantification of damages through arbitration by international investors of renewable energy projects, particularly solar photovoltaic (PV) plants. The article has been published in the January 27, 2017 issue of Quotidiano Energia.
The Spanish government has cut subsidies for renewable energy projects, prompting international investors to seek damages through arbitration. There are now signs that Italy may be going in the same direction. In the article, Dr. Lo Passo and Mr. Harris explain that the financial environment for Italian PV plants has deteriorated in recent years, due to both new rules on the costs of the electrical system that PV plants must bear, and the Italian government’s cuts in subsidies.
The article also discusses the possible counter arguments that the Italian government may use to defend the cuts, and explains the important role of economic analysis in quantifying the reduction in PV plants’ value as a result of the changes.
Brattle consultants are active in providing expert economic evidence for several of these cases. The English and Italian versions of the article can be accessed using the links below.