New Technologies for Resolving International Energy Disputes

To date, energy disputes between companies and states account for a fifth of international commercial disputes. In 2020, more than 50% of the cases accepted for consideration by the International Center for Settlement of Investment Disputes were disputes in the field of energy. In view of the objective doubts of investors in the ability of the host state to ensure independent judicial proceedings in recent years, the world scientific community has been actively exploring alternative mechanisms for resolving international energy disputes in an attempt to identify the most appropriate form that corresponds to modern realities and guarantees compliance with the interests of both parties. The purpose of this study is a comprehensive analysis of the existing forms and methods of resolving international energy disputes, identifying the optimal mechanism for their consideration, suitable for both the state and the investor. The authors formulated the definition of the concept of an international energy dispute, highlighted the advantages and disadvantages of the most common methods of resolving this type of dispute. The authors come to the conclusion that in the conditions of technology development, increasing global interest in renewable energy sources, increasing number of energy contracts, the leading role in the system of the most promising models for resolving international energy disputes belongs to international commercial arbitration. Arbitration is uniquely well-suited to deal with disputes relating to innovative technologies arising in the energy sector. As a process, arbitration is more readily able to adapt to the new status quo brought about by innovation than many national courts and can offer innovative dispute resolution solutions. Innovators in arbitration are already developing automated dispute resolution processes that operate in the same way that a smart contract does. © 2022, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.