China-based Hanergy Thin Film Power Group is to repay its parent company, Hanergy Holding, 1,262,629,000 Hong Kong dollars as compensation for default on a supply contract.
The former failed to deliver an equivalent of 459.4MW of a-Si thin-film photovoltaic modules under a supply contract for downstream PV power plant projects signed in 2013.
The orders had totaled 677.9MW of the said modules for utility-scale projects. The buyers had also paid about 50 per cent of the contract value in 2013. However, Hanergy TF was able to supply only 58.5MW.
In the fourth quarter of 2014, Hanergy TF had terminated the previous master supply contracts on repayment of $162 million.
Hanergy TF had been failing to meet module supply deals and in the first half of 2014 delivered only 2.3MW of capacity.
Nonetheless, the company’s downstream affiliates continued to enter contracts with Hanergy TF in 2014. It totalled 558MW for planned PV projects.
Although Hanergy TF delivered only 28.8MW of PV modules in 2014 and 689.2MW of modules remained outstanding, the supply contracts weren’t terminated.
But Hanergy TF continued to fail delivery of modules and had to make significant repayments.
Despite the setback, though, three independent China-based newcomers to the photovoltaic industry has contracted Hanergy TF for a-Si production lines and support services targeting Building Integraged Photovoltaics applications in deals worth almost $2.5 billion.
Ajith Kumar S