International
The mechanism of choice for the resolution of complex disputes in a booming sector
Key Aspects
- Renewable energy investment is expanding rapidly worldwide. As the sector grows, disputes are becoming more frequent and more complex across the full project lifecycle, from development and construction to operation and decommissioning.
- International arbitration is presented as the preferred mechanism for resolving renewable energy disputes because it offers neutrality, flexibility, enforceability, and the ability to handle technically complex and cross-border conflicts.
- Common disputes arise during the development and construction phases, particularly in relation to permits, grid access, environmental approvals, delays, design defects, performance guarantees, variations, force majeure events, and liquidated damages. Once projects are operational, disputes often focus on PPAs, equipment performance, O&M obligations, pricing mechanisms, curtailment compensation, deemed generation clauses, and termination triggers. We also highlight growing arbitration risk in post-M&A claims, consortium and joint venture conflicts, investment treaty disputes, ESG and environmental claims, insurance disputes, and controversies linked to new technologies such as offshore wind, green hydrogen, battery storage, and carbon-related mechanisms.
- As a practical takeaway, in-house counsel needs to adopt a proactive approach to risk management, including strong claim management systems, robust back-to-back risk allocation, disciplined change control, careful monitoring of PPA obligations, attention to arbitration clause compatibility, and close coordination across legal, regulatory, finance, and technical teams.
For more information, please contact our specialists through the Knowledge and Innovation Area.