Invenergy makes Polish challenge
Company claiming damages of $700m over wind farm PPA dispute
US company Invenergy is taking action against the Polish government because of a dispute over power purchase agreements (PPAs) between state-owned utilities and wind farms owned by the company’s affiliates.
Invenergy said it has submitted a letter to Polish officials, including the president and prime minister, serving as formal notification of dispute.
The company alleges government authorities were behind the termination of PPAs that “destroyed the financial viability” of its investments in the wind farms.
Invenergy is claiming damages amounting to about $700m.
The company said the notice had been served under the US-Poland Bilateral Investment Treaty and the Energy Charter Treaty.
Invenergy chief legal officer Michael Blazer said: “Bilateral investment treaties protect investors whose rights have been violated by another country, and that is what has happened to Invenergy in Poland.”
The company plans to submit the dispute to international arbitration, if no settlement is reached within six months.
Invenergy is also pursuing legal action in the Polish courts against several state-controlled entities.