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Iberdrola Renovables Acquires Rights To Build The 400 MW Ventotec OST 2 Offshore Wind Farm In Germany

22/03/2010

The wind farm is expected to be commissioned by 2014

IBERDROLA RENOVABLES ACQUIRES RIGHTS TO BUILD THE 400 MW VENTOTEC OST 2 OFFSHORE WIND FARM IN GERMANY

The company has bought 100% of the project from the German Joint Venture of Deutsche Erneuerbare Energien GmbH (Deutsche Bank Group) and Ventotec GmbH (GHF-Group)

The Ventotec Ost 2 wind farm will be located in German zone of the Baltic Sea and will have a total capacity of up to 80 wind turbines of 5 megawatts (MW) each

IBERDROLA RENOVABLES is involved in the development of other offshore projects in Germany in the context of a Europe-wide offshore wind power development programme totalling almost 12,000 MW

IBERDROLA RENOVABLES has bought 100% of the rights to build the Ventotec Ost 2 offshore wind complex in the German zone of the Baltic Sea from a German joint venture comprising Deutsche Erneuerbare Energien GmbH (Deutsche Bank Group) and Ventotec GmbH (GHF-Group). They were awarded the permit in 2007.

The Ventotec Ost 2 offshore wind complex is at an advanced stage of the authorisation procedure, and the wind farm is expected to be commissioned by 2014. The wind farm’s 80 wind turbines of 5 megawatts (MW) each will generate a total of 1.200 Gigawatthours (GWh).

Ventotec Ost 2 is located in the northern part of the priority wind area known as Westlich Adlergrund, at a distance of some 40 km. from the nearest coastline, the island of Rügen. The average depth of the water is approximately 39m.

The German government has set a target of obtaining at least 10,000 MW from this technology by 2020, of which the Company expects to obtain a significant market share.

With this project, IBERDROLA RENOVABLES consolidates its leadership in offshore wind development, with the company currently developing projects amounting to 12,000 MW all over the world.

IBERDROLA RENOVABLES recently created an Offshore Wind Division to channel the development of this significant volume of offshore wind power. The objective is to promote a business offering significant strategic potential, and which enjoys an attractive regulatory framework.

The company has recently been awarded, together with Vattenfall, the construction rights to build one of the largest offshore wind farms in the world in the United Kingdom. The North Sea zone, known as East Anglia Array, has the potential to develop up to 7,200 MW, with construction is expected to begin in 2015.

This initiative is in addition to others already under development in various areas of Europe (Germany, Spain and the United Kingdom), amounting up to an additional 4,800 MW. Specifically the company is also involved in the development of several further offshore projects in Germany and has a pipeline of 2,300 MW in the United Kingdom, including the West of Duddon Sands facilities -developed jointly with Dong-, with 500 MW, on which construction will begin in 2012, and Argyll Array, up to 1800 MW. It also develops another 1,000 MW in northern Europe.

In Spain, IBERDROLA RENOVABLES has requested areas to be reserved for conducting preliminary studies before seeking authorisation for six projects, which will be located on the coasts of Cadiz, Castellón and Huelva, with a total of 1,500 MW.

Between 2010 and 2012, IBERDROLA RENOVABLES expects to invest 9 billion euros to promote international expansion and to consolidate its position as a world leader in wind power . The Company will earmark 4.9 billion euros for the United States, 1.9 billion euros for the United Kingdom, 1 billion euros for Spain and 1.2 billion euros for Germany and the rest of the world.

For the present fiscal year, IBERDROLA RENOVABLES expects to maintain its investment effort and increase its operating results by 20%, with the installation of an additional 1,750 MW for a total of 12,500 MW. The Company currently has 937 MW under construction throughout the world.

IBERDROLA RENOVABLES, today present in 23 countries, is a global leader* in its sector, both for installed power -with nearly 11,000 MW at the close of 2009, and for production of electrical power, with nearly 21,500 million kilowatts per hour (kWh) in 2009.

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The information and all statements contained in this press release have not been verified by independent third parties; therefore no express or implied warranty is made as to the impartiality, accuracy, completeness or correctness of the information or the opinions and statements expressed herein.

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i Source: Bloomberg New Energy Finance