Disputes predicted in rise of renewable energy projects

The National Business

By PETER ESILA
RENEWABLE energy projects will become an increasingly crucial part of the energy mix of Papua New Guinea, according to an expert.
William Panlilio, an associate at King & Spalding Singapore, said this during the international mediation and arbitration conference in Port Moresby yesterday.
“Renewable energy is here to stay,” Panlilo said.
“As a result, we will continue to see complex, large-scale and multi-party renewable energy projects.
“That is inescapable. Because we will have more projects, we will see more disputes, not just commercial disputes but also investment treaty disputes.”
Panlilo said arbitration, as a means of dispute resolution, lended itself well to the complex, multi-party nature of renewable energy disputes. He said arbitration clauses should cover all appropriate parties across the entire renewable energy value chain.
“Ensure that arbitration clauses are clear and unambiguous. Do not assume that arbitration extends to or is incorporated by related agreements.
“Consider whether there are international law protections available.” Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute.
In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court. An arbitration is international if:

  • the parties to an arbitration agreement have, at the time of the agreement, their places of business in different states;
  • (i) place of arbitration, or (ii) place that has the closest connection to the dispute is situated outside the state in which the parties have their places of business; and
  • parties have expressly agreed that the subject matter of the arbitration agreement relates to more than one country.