Sinovel sued by Huaneng over turbine deal

CHINA: Sinovel is being sued by 12 subsidiaries of Huaneng Renewables in the Beijing No.1 Intermediate People's Court over an alleged breaking of contracts.

Sinovel's SL6000 turbine
Sinovel's SL6000 turbine

The companies, led by Huaneng Fuxin Wind Power, are demanding CNY 90.56 million ($14.7 million) in damages from Sinovel as well as legal permission to withhold the warranty money they owed to Sinovel, which amounts to CNY 1.13 billion.

According to reports, Huaneng said equipment supplied by Sinovel has been beset by "serious quality problems". The two parties later negotiated twice and signed supplementary agreements for settlement, which Sinovel are alleged to have failed to fulfill.

In 2013, Sinovel won a contract from Huaneng to supply 17 SL6000 6MW turbines to the Shanghai Lingang project. According to Windpower Intelligence the project is due to come online next year.

Huaneng Renewables has been a customer of Sinovel since 2007. According to Windpower Intelligence, Huaneng has brought online at least three projects using Sinovel 1.5MW turbines since 2009.

These are Guazhou Qiaowan No.2, Gaoliban and Fuxin Phase II. They are in Gansu, Inner Mongolia and Liaoning respectively, and have a combined capacity of 550MW.

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