Argentinean wind power firm, Genneia is the subject of court proceedings from Vestas after a dispute about payment following the delivery of wind power technology to one of Latin America’s largest wind power plants.
Vestas confirmed to PEI that they had installed 43 V90-1.8 MW turbines representing a total capacity of 77 MW at the Rawson Wind Farm but refused to comment further apart from declaring that they had initiated international arbitration proceedings towards Genneia before the International Court of Arbitration of the International Chamber of Commerce.
The dispute was triggered by Genneia’s refusal to use the dollar, instead insisting on the Argentine peso as the currency to settle the amounts outstanding under the supply and installation agreement, the full value of which totalled $102m.
But Genneia claims its hands are tied by Argentine government currency regulations.
Genneia also issued a statement to PEI to state that the company always honoured its commitments. It elaborated that under the supply agreement for services rendered in Argentina payment must be made in Argentinean Pesos in compliance with local regulations.
Genneia “has always honored its commitments”, the company adds. “The funds required to cancel this debt continue to be available to Vestas Argentina.
"But the company will settle the debt in Argentine Pesos, in compliance with the Argentine law mandatory provisions applicable to the payment of this debt.”
According to Recharge website, the Danish wind turbine group could face a significant currency-exchange loss if it is paid in pesos rather than US dollars, as it claims was agreed.
Vestas alleges that Genneia, formerly known as Emgasud, owes it $32m – of which Genneia recognises only $19.8m.
In further bad news for Vestas it announced that it expects to shed about 650 jobs in Denmark by the end of September as part of plans to reduce its workforce globally by about 3,700 by year-end.
"This is a step in implementing the already announced plans," Vestas spokesman Mikkel Friis-Thomsen said after the company said it would begin negotiations with employees on Thursday this week.
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