The company Energías Renovables de la Región de Murcia (ERRM), in which IBERDROLA RENOVABLES holds a 50% stake, has commissioned the Los Almendros II wind farm in the municipality of Jumilla.

The new facility has 14 turbines, each capable of generating up to 2 MW, for a total generation capacity of 28 MW.

The new wind farm raises to 140 MW the total wind power capacity operated by IBERDROLA RENOVABLES in the region, where it also operates Buey, Gavilanes I and II, Reventones and Los Almendros, all located on the high plateau near Yecla and Jumilla.

At the end of the third quarter IBERDROLA RENOVABLES had a total renewable energy power output capacity of 7,342, representing an 80% increase from the 4,076 MW of a year earlier, and consolidating the company’s worldwide leadership in the wind power industry.

With the plant added in the first nine months of the year –516 MW in the third quarter alone– the company now has 7,000 MW of wind power capacity, of which 2,965 MW are outside Spain. It also has 342 MW of capacity from mini-hydro plants.

IBERDROLA RENOVABLES added 162 MW to its wind power potential in thirteen Spanish regions in the first nine months of 2007: 98 MW in Andalusia, 48 MW in Castile-León, 12 MW in Murcia, and 4 MW in the Basque Country.

Outside Spain, the company added 354 MW of capacity in the third quarter, and now operates 2,046 MW in the United States**, 372 MW in the United Kingdom, 214 MW in Greece, 89 MW in Poland, 86 MW in France, 60 MW in Germany, 50 MW in Portugal, and 49 MW in Brazil.

Meanwhile, IBERDROLA RENOVABLES project pipeline, in varying stages of development, now add up to more than 41,200 MW. More than half (some 21,200 MW) are in the United States, with about 6,600 MW in Spain, nearly 6,100 MW in the United Kingdom, and some 7,350 MW in the rest of the world.

Output from the company’s operational renewables plants reached 9.4 billion kWh in the third quarter, up 68% from same-2006, and accounted for 11% of the IBERDROLA group’s total electricity production.

Annual production by the renewables plants is the equivalent to the average consumption of 10.5 million people in Spain, and it spares the earth’s atmosphere from emissions of more than 4.5 million tonnes of CO2 each year.

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* Source: New Energy Finance (May, 2007).

** Includes 606 MW belonging to a third party under an energy sales contract.

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IMPORTANT INFORMATION

The Folleto Informativo of the IPO of IBERDROLA RENOVABLES , S.A.U. has been approved by the Comisión Nacional del Mercado de Valores (CNMV) on 22 November 2007, and is available through IBERDROLA RENOVABLES , S.A.U.’s and the CNMV’s web sites, as well as in the registered address of Iberdrola Renovables, S.A.U., the Stock Exchanges, the banks acting as underwriters and the Agent Bank.

This announcement is not an offer for sale of securities in the United States, United Kingdom, Canada, Japan or Australia or in any other jurisdiction in which offers or sales would be prohibited by any applicable law. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended and any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the company and management, as well as financial statements. IBERDROLA RENOVABLES , S.A.U. does not intend to register any portion of the offering of the securities in the United States or to conduct a public offering of the securities in the United States. Copies of this announcement are not being made and may not be distributed or sent into the United States.

In the United Kingdom, this announcement, in so far as it constitutes an invitation or inducement to participate in an offer for sale of securities, is directed exclusively at (a) persons who have professional experience in matters relating to investments who fall within article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”) or (b) are persons falling within article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc) of the Order or (c) other persons to whom it may be directed without contravention of section 21 of Financial Services and Markets Act 2000 (all such persons together being referred to as “relevant persons”).

FORWARD-LOOKING STATEMENTS

This communication contains forward-looking information and statements about IBERDROLA RENOVABLES , S.A.U. and otherwise, including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates” and similar expressions. Prior results cannot be used as indicators of future performance.

Although IBERDROLA RENOVABLES , S.A.U. believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of IBERDROLA RENOVABLES , S.A.U. shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of IBERDROLA RENOVABLES , S.A.U., that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.

Forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of IBERDROLA RENOVABLES , S.A.U. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All subsequent oral or written forward-looking statements attributable to IBERDROLA RENOVABLES , S.A.U. or any of its members, directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements included herein are based on information available to IBERDROLA RENOVABLES , S.A.U. on the date hereof. Except as required by applicable law, IBERDROLA RENOVABLES , S.A.U. does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.