The European Commission announced on Tuesday, August 4, 2026, that it has opened an in-depth investigation into whether an arbitration ruling requiring Spain to pay Japanese firm JGC Holdings compensation for modifications to a renewable power support scheme violated EU state aid regulations.
In 2021, an arbitration court ordered Spain to pay €23.5 million (approximately $27.04 million) to JGC Holdings for losses allegedly incurred due to changes made to a 2007 scheme designed to support investments in renewable energy projects. Spain subsequently made the payment to Blasket Renewables Investment, a U.S.-based fund that had been assigned the rights to the award.
The European Commission's preliminary view is that the arbitration award constitutes state aid and that it granted an advantage to JGC Holdings and Blasket Renewables Investment. The probe aims to determine whether this payment complies with EU state aid rules.
A file photo shows the logo of Japanese engineering firm JGC Corporation displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, on July 12, 2023.
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