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Civil Litigation

Energy Arbitration

A power purchase agreement has gone sour, a gas price review has stalled, or a renewable project contractor and owner disagree over delays. Energy arbitration is where many of these disputes end up, because the contracts usually require it.

Reviewed

01 GUIDE

Energy Arbitration: what usually happens

Disputes that reach energy tribunals

Energy contracts tend to be long-term and high-value, which makes them prone to disagreement when market conditions change. Long-term gas and LNG supply agreements often contain price review clauses that allow either side to seek an adjustment, and those reviews regularly turn into arbitrations. Power purchase agreements raise disputes over curtailment, interconnection delays, and change-in-law provisions. Construction contracts for plants, pipelines, and renewable facilities produce delay and defect claims. Where a foreign investor's project is affected by government action, investment treaty arbitration may also be available, which follows a separate framework from commercial arbitration.

Technical evidence and contract records

Energy arbitrations are document-heavy and depend on technical analysis. Collect the full contract with all amendments and side letters, notices exchanged under it, operating data, and market pricing information relevant to the dispute. Construction disputes call for schedules, progress reports, change orders, and correspondence with engineers. Retained technical witnesses, such as engineers or market economists, are frequently needed to explain causation and damages. Notice provisions in energy contracts can be strict, so check whether formal notice of a claim or dispute has been given in the required form and to the right address.

Choosing rules, seat, and strategy

Most energy contracts specify the arbitral institution, such as the ICC, the ICDR, or the LCIA, and the seat of arbitration, which determines which national courts can oversee the process. New York is a common seat, and awards from it are generally enforceable abroad through the New York Convention. Some contracts require negotiation or mediation before arbitration can begin. In an early review we confirm which procedures apply, whether interim relief is needed to protect supply or assets, and how the claim should be framed. We also discuss cost, since arbitration of this kind can be lengthy, and the likely sequence of filings. If related disputes exist under other contracts in the same project, we consider whether they can or should be heard together.

02 ATTORNEYS

Who you would be working with

Attorneys at our New York and Washington, D.C. offices handle matters like this one.

04 HOW WE WORK

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05 OFFICES

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Attorney Advertising. This page is general information about energy arbitration and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts of each matter, and prior results do not guarantee a similar outcome. Laws differ by state and change over time.