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Home > Legal & Regulatory docs.

RWE AG and RWE Eemshaven Holding II BV v Kingdom of the Netherlands - ICSID Case No. ARB/21/4 - RWE Press Release explaining the reasons for arbitration against the Netherlands - English and Dutch - 11 February 2021

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Country
  • Germany
  • Netherlands
Year

2021

Summary

RWE Generation explained the reasons for arbitration against the Netherlands at the International Centre for Settlement of Investment Disputes in Washington to the Dutch Parliamentary Committee on Economic Affairs and Climate Policy

Roger Miesen, CEO of RWE Generation: "RWE expressly supports the energy transition in the Netherlands and measures to reduce CO2 emissions. We do not by any means question the coal phase-out decided by parliament. However, we do not consider it right that the law does not provide for compensation for the resulting disruption to the company's property.

Therefore, we have filed a request for arbitration against the Netherlands at the International Centre for Settlement of Investment Disputes. We remain open for any constructive proposal for a solution. RWE is consistently phasing out coal and at the same time investing massively in renewables, energy storage and hydrogen. We will become carbon neutral by 2040."

At the beginning of February, RWE filed a request for arbitration at the International Centre for Settlement of Investment Disputes (ICSID) in Washington under the Energy Charter Treaty.

Today, Roger Miesen, CEO of RWE Generation, explained the reasons for this request to the Dutch Parliamentary Committee on Economic Affairs and Climate Policy: In 2019, the parliament passed a law banning the use of coal for electricity generation from 2030 at the latest. However, no compensation is provided for the resulting disruption to the property of affected companies. RWE rejects this and will also take its claim to a Dutch court in the near future.

In 2015, the Eemshaven power plant, which had been built on request of the Dutch government at the time, went into operation. RWE invested more than 3 billion euros in the plant. Due to the coal phase-out act and the fact that biomass as a substitute fuel is not economically viable without subsidies, RWE will not be able to operate the Eemshaven power plant profitably from 2030 onwards. Roger Miesen: "During the legislative process, we have offered a number of times to work together to find a solution which is suitable for both the Dutch government and our company. Should the Dutch government make appropriate proposals, we will continue to be willing to do so." In other countries, such as Germany, parliament has granted compensation to the affected companies, based on the recommendations of an independent commission.

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