The Czech law firm Glatzová & Co., which is representing foreign investors in arbitration against the Czech state over changes affecting solar power providers, has begun collaboration with British-German law firm Freshfields Bruckhaus Deringer (FBD). According to conservative estimates, FDB’s and Glatzová & Co.’s legal representation will cost between $5 million and $10 million.

Revenue from solar power stations is expected to plummet due to the retroactive tax. But at the currently legislated lower purchase price for electricity from the plants, and factoring in a further increase in electricity prices for consumers, there may be a surprise in store — the free market might offer a higher price to the solar power plant owner than the price guaranteed by state subsidies.

The Czech state and investors in solar power plants will probably meet in front of the arbiters in a few months over the retroactive solar tax law. Both sides are employing well-thought out but utterly different tactics. After the notice of a dispute is served on the state, there will be six months for reconciliation — but few expect an amicable settlement.

The Czech state should brace itself for a new form of arbitration. If foreign investors in the country’s photovoltaic sector stick to their threat, within two months Finance Ministry officials who represent the state in arbitration cases can expect unpleasant notification in the post. According to Czech Position’s sources, foreign “solar” investors are planning to file a joint legal complaint against the Czech Republic.