US-based energy company Invenergy has submitted a letter to the senior officials of the Government of Poland to settle a dispute over windfarm contracts where the company allegedly lost around $700m.
The letter serves as a formal notification of dispute under the US-Poland Bilateral Investment Treaty (US-Poland BIT) and the Energy Charter Treaty (ECT).
The letter notes alleged unlawful and coordinated acts carried out by Poland against a number of Invenergy’s wind investments. The activities have allegedly destroyed the financial viability of these windfarms and incurred losses of approximately $700m to the company.
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.
“While the Polish Government’s disregard for the rule of law continues to escalate, we are working to secure our rights, and other investors are watching.”
In the notification letter, Invenergy has accused the Government of Poland of unlawfully terminating long-term commercial contracts including the fixed-price, long-term energy contracts signed with Polish state-controlled utility companies in 2010.
According to Invenergy, the company had to accept a below-market price for the output of the windfarms in return for the stability provided by the long-term contracts. It is alleged the government later directed its state-controlled energy companies to terminate the long-term contracts.
Invenergy further complained that the Government of Poland took deliberate actions to depress renewable energy market prices.