IBERDROLA has reached an installed power in renewable energy of 4,076 megawatts (MW) up to the third quarter of 2006, which is an increase of 23% compared with the 3,304 MW of the same period of the previous year.

The Company has started up 772 MW over the last 12 months and it now has 3,743 MW of wind energy -348 MW outside Spain- and 333 MW from mini hydroelectric plants, to which are to be added a further 568 MW in the construction phase.

IBERDROLA has renewable electricity generation capacity in 12 Spanish regions and in a further 7 countries: Greece, Brazil, France, Germany, Portugal, the United Stated and the United Kingdom. So far in 2006, the Company has installed 154 MW in Spain, of which 121 MW are in Castillo and Leon and Castillo-La Mancha. In the international area, 112 MW have been started up.

The Company’s renewable installations have achieved a production of 5,608 million kWh between January and September of this year (+15.1%), 8.4% of the total, with notable of wind power of 17.2% to 5,181 million kWh.

The most relevant news occurring in this period has been the signing of the largest ever contract for wind generators with Gamesa for an amount of over 2,300 million euros and which will be carried out between the 2007 and 2009 financial years.

Moreover, IBERDROLA has agreed the purchase from Gamesa of wind farms in the USA between 2007 and 2009, with an installed capacity of almost 1,000 MW and which are located in the states of Pennsylvania, Texas and Illinois.

Other major operations agreed in the first nine months were the purchase of two wind farms in the United Kingdom (Clachan Flats and Darracott), the acquisition of the French company Perfect Wind, which has a project portfolio of 600 MW, the purchase of Community Energy Inc (CEI) in the United States, with a portfolio of 2,400 MW and the signing of a framework agreement with the Bayannaoer (China) Council to seek locations for wind farms to be installed totalling 1,000 MW.

Concerning other types of renewable energy, IBERDROLA acquired the rights to the biomass plants of As Somozas (A Coruña) and Archidona (Málaga), installations to add to those that the Company will build in Corduente (Guadalajara).

It also has a total of 13 thermoelectric solar energy projects in Spain, amounting to 605 MW of power and anticipates building a bio-ethanol plant in Barcial del Barco (Zamora) and developing a wave energy project in Cantabria. In the area of cogeneration, including renewable energy in the Special Regime, IBERDROLA has also become the largest Spanish company by power with 562 MW installed.

Growth Forecast

IBERDROLA, which is at the head of the world wind power market, forecasts reaching 7,000 MW of installed renewable power in 2009 and 10,000 MW in 2011. International expansion will be the key to achieving it, for which it therefore now has offices in Birmingham (United Kingdom), Rennes and Paris (France), Rome (Italy), Berlin (Germany), Warsaw (Poland) and in the United States in addition to those that it already had in Greece, Portugal, Mexico and Brazil.

The Company’s firm commitment to renewable energy is within the framework of its commitment to the environment, sustainable development and compliance with the Kyoto Protocol. As a result, IBERDROLA has become the only Spanish electricity company included in the Climate Leadership Index, an international recognition that emphasises its firm strategy to combat climate change.