Two subsidiaries of the Austrian group Strabag are now trying to force Germany to pay compensation for lost investments in offshore wind in a court in Washington, D.C. The two companies believe they are entitled to almost 241 million euros (approximately 1.8 billion DKK) in compensation and a further 92.5 million euros (approximately 700 million DKK) in interest. This is what the German Spiegel writes.
- With this case, we are exercising our right to receive the compensation that we have been awarded, said a spokeswoman for Strabag. According to the company, the German state has not responded to a payment request.
The two companies had previously been successful in the case at the World Bank's arbitration court, where they were awarded compensation of almost 241 million. euros (approx. 1.8 billion DKK) and just over 92.5 million euros (approx. 700 million DKK) in interest.
According to their own information, Strabag's two companies invested approximately 122 million euros (approx. 910 million DKK) in offshore wind projects in the North Sea. According to them, the value of these investments fell significantly as a result of a change in Germany's renewable energy law.
The requirement is based on the Energy Charter Treaty, an international agreement on the protection of energy investments, from which Germany has, however, withdrawn. In the case, the German Ministry of Economics (*Federal Ministry for Economics and Climate Protection*) unsuccessfully referred to a decision by the European Court of Justice that invalidates the treaty in an EU legal context.
Trade expert Fabian Flues from the German NGO Powershift believes that the case shows how private arbitration courts can disregard applicable EU law.
“The new federal government must ensure that such cases cannot take place in the future,” says Fabian Flues, a trade expert at Powershift.
The German Ministry of Economics did not want to comment on the case to Spiegel.
Denmark has also decided to leave the treaty, citing the fact that it could hinder the green transition. However, cases will still be able to be brought against Denmark for a 20-year period after withdrawal.
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