Gamesa and Iberdrola Renovables implement their strategic agreement

Gamesa Energía and Iberdrola Renovables have announced the implementation of the strategic agreement they signed in June 2008 to jointly promote, develop and operate wind farms in Europe. The amendment of the agreement’s technical terms and conditions will allow the value of both companies’ project portfolios to be maximized.

By virtue of the aforementioned agreement, Gamesa Energía and Iberdrola Renovables will develop their wind power project portfolios autonomously, though in close collaboration, over the next two years. In order to achieve this, a joint Consultative Committee comprised of three senior executive from each company will be set up, which will be responsible for supervising execution of the agreement through June 30, 2011.

As of that date, assuming the requisite conditions are met, put and call options on Gamesa Energía’s wind energy promotions will come into play within the territory set out in the agreement. Iberdrola Renovables will acquire the business outright or opt for constitution of a joint venture (75% Iberdrola Renovables, 25% Gamesa Energía) to manage the project portfolio in the territory. In both scenarios, the Gamesa Energía employees working on those projects will be transferred to Iberdrola Renovables.

This structure maintains the essence of the strategic agreement signed in June 2008 while, at the same time, amending technical aspects that had delayed implementation and adapting the agreement to market conditions.

Additional Information

Gamesa Energía’s portfolio in the United Kingdom enters into the continental European agreement, as it has been incorporated into the European wind farm portfolio assigned to the agreement. Furthermore, both companies have agreed that Iberdrola Renovables will acquire Gamesa Energía’s projects in Mexico as per terms and conditions agreed prior to this strategic agreement.

About Gamesa

Gamesa is a company specializing in sustainable energy technologies, mainly wind power. Gamesa is the market leader in Spain and is positioned among the most important wind generator manufacturers in the world.

Gamesa has installed more than 16,00MW of wind energy around the world. The annual equivalent of this production amounts to more than 3,45 million tons of petroleum (TEP) per year and prevents the emission into the atmosphere of over 24 million tons of CO2 a year.

Gamesa Energía’s global wind farm development project portfolio, exceeded 21.000 MW as of end June 2009. Gamesa has production centers located in Europe, China and the United States, with an international workforce of more than 7,000 employees.