Study On Right To Regulate Of Host State In Renewable Energy Investment

Since entering into 21st century,with the growth of economy,the progress of science and technology,the requirements of sustainable development,renewable energy sector has attracted a lot of investments.Renewable energy becomes one of the emerging fields of international investments,the development of the practice needs the support of theoretical knowledge,so studying the renewable energy international investment legal issues is the realistic requirement of national development.Compared with fossil energy,the renewable energy has always been provided with various kinds of incentive measures by host state to attract foreign captain invest in this sector,especially providing all kinds of preferential measures to investment from tax,regulation,police and so on.However,after the investment made,the host state for various reasons changed the conditions on which investors had made their investments,which has caused damages to the interests of investors,then question about the right to regulate of host state appears.Right to regulate of host state is the right of state to intervene and regulate its domestic affairs.The United Nations General Assembly Resolution 3281-Charter of Economic Rights and Duties of States sets out "Each State has the right to regulate and exercise authority over foreign investment within its national jurisdiction".For the research of the balance between right to regulate and investment protection,most domestic articles prefer to protect the investor’s interest rather than the host state,mainly because investment agreements require protect investment.However,this method is not appropriate when it comes to renewable energy investment as it is relevant to energy security,and this method would hurt host state’s interest,so it is necessary to balance the investor’s interest and state’s interest.This article aims through analyzing the questions in Charanne v.Spain case to study renewable energy investment disputes caused by the legislation,policy and tax changes in host state.At the same time studying on the balance between public interest and private interest,then based on Chinese condition providing suggestions.The first part,provides information about the renewable energy investment circumstance and legal structure,introduces different opinions on right to regulate of host state,then combines the Charanne v.Spain case to put forward right to regulate of host state in renewable energy investment.The second part,analyzes the relationships between host state’s right to regulate and indirect expropriation,fair and equitable treatment,and combines the Charanne v.Spain case to discuss the standards of indirect expropriation and fair and equitable treatment,and restricts the standards of legitimate expectation of investor.The third part,discusses how to balance right to regulate and investment protection,mainly from aspects of legislation and arbitration procedure and investor’s social responsibility,then give some advices,so that balancing between public interests and private interests.The fourth part,introduces renewable energy investment in China,combines with "one belt and one road" policy,to analyze how should China deal with right to regulate in renewable energy investment,mainly based on China as the host state and as the investor,then gives advices for safeguarding national sovereignty and protecting the interests of investor.