Dispute Resolution In Energy Projects: Mediation And Litigation

With the increasing scale and complexity of energy projects, disputes have become an inevitable component of the sector. Delays, cost overruns, payment disputes, and contractual ambiguities frequently give rise to conflicts between stakeholders. Given the high financial stakes and long-term nature of such projects, the choice of dispute resolution mechanism plays a critical role in determining both legal and commercial outcomes.

Traditionally, litigation has been the primary method for resolving disputes. However, in recent years, mediation has gained prominence as a faster and more flexible alternative, particularly in commercial disputes.

This article evaluates mediation and litigation as dispute resolution mechanisms in energy projects, focusing on their practical implications, advantages, and limitations.