The commission is investigating the compensation of 61 million euros imposed on Bulgaria as a possible illegal state aid.

The EU executive opens a detailed investigation to determine whether the compensation ordered by an arbitration tribunal violates state aid rules and the primacy of European law.

Brussels, January 23, 2026 – The European Commission has launched a detailed investigation to assess whether an arbitration ruling requiring Bulgaria to pay over 61 million euros to ACF Renewable Energy Limited constitutes illegal state aid. The investigation highlights the ongoing legal conflict between international arbitration tribunals and the autonomy of the EU legal order regarding intra-EU investment disputes.

In short

The Commission is examining an arbitration ruling of 61.04 million euros against Bulgaria, in favor of the Malta-based company ACF Renewable Energy.

The decision is based on the Energy Charter Treaty (ECT), but the Commission argues that intra-EU arbitration clauses are invalid under European law.

The Commission's preliminary opinion is that the payment of compensation would constitute incompatible state aid, providing ACF with an unfair advantage.

The case dates back to 2011 when Bulgaria established a support scheme for electricity from renewable sources. ACF, a company established in Malta, invested in a photovoltaic solar power plant in Bulgaria in 2012. However, following legislative changes made by Bulgaria between 2013 and 2015 that altered the support scheme, ACF initiated arbitration proceedings, claiming financial losses.

In January 2024, an arbitration tribunal ruled that Bulgaria had violated the Energy Charter Treaty (ECT) and ordered the country to pay ACF the sum of 61.04 million euros plus interest. Bulgaria notified the Commission about this ruling but has not yet made the payment.

The Commission's preliminary assessment is that the arbitration ruling constitutes state aid within the meaning of Article 107(1) of the Treaty on the Functioning of the EU (TFEU) and is incompatible with the internal market. The executive argues that the dispute is strictly an "intra-EU" matter – between an EU member state and an investor from another member state. Citing the landmark rulings of Achmea and Komstroy by the Court of Justice of the EU (CJEU), the Commission argues that the arbitration clauses in the ECT do not apply to intra-EU disputes, as they undermine the jurisdiction of European courts. Consequently, any payment made based on such a ruling would be considered a violation of EU law.

https://2eu.brussels/ro/stiri/comisia-investigheaza-despagubirea-de-61-milioane-euro-impusa-bulgariei-drept-posibil-ajutor-de-stat-ilegal