Massachusetts Court Rules In Favour of Vineyard Wind, GE Vernova Must Stay on Project

The 806 MW Vineyard Wind 1 offshore wind farm, which comprises 62 GE Vernova Haliade-X 13 MW wind turbines, was recently completed with commissioning activities currently underway.

The court filing from 17 April states that Vineyard Wind pointed out that the project is two years behind schedule, the cause of which includes defects in turbine blades manufactured and installed under GE’s responsibility. The blade failure in 2024, which included the blade breaking off and falling into the ocean, triggered environmental cleanup, investigations, and the replacement of nearly all blades that were installed by that point, delaying the construction work.

According to the court document, a project engineer appointed under the contract determined that GE owes Vineyard Wind more than USD 500 million (approximately EUR 425 million) in claims, which then led to Vineyard Wind withholding around USD 308 million (approx. EUR 264 million) in payments to GE based on those determinations.

GE sought to terminate the contract under a clause allowing termination if “amounts due” are not paid within specified conditions, arguing the offsets triggered that right.

The court found Vineyard Wind has a reasonable likelihood of success, noting that the contract allows offsets based on the engineer’s determinations and does not set a clear cap on them. It also stated that because Vineyard Wind is entitled to withhold payments under the agreement, there may be no “amount due” in the sense required for termination under the clause GE relied on.

The judge further noted that GE had not pursued the contract’s dispute resolution mechanism to challenge the engineer’s findings.

The court accepted Vineyard Wind’s argument that allowing termination would cause irreparable harm, pointing to GE’s unique technical role, expertise, and proprietary technology. It said replacing GE mid-project would be impractical and could significantly threaten project financing and progress.

According to the ruling document, the court found GE would not suffer irreparable harm, noting it had already been subject to offsets since 2024 without promptly pursuing contractual remedies.

The court ordered that GE Renewables must not give effect to its termination notice dated 27 February and that it must continue performing under both the turbine supply and service agreements.

The company can also not cease or alter performance based on the intended termination, the court ordered.

The ruling keeps GE in place as the contractor while the broader contractual dispute continues.

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