• Iberdrola Renovables ended 2007 with 7,704 MW of installed power and a pipeline of projects totalling more than 42,000 MW, consolidating its worldwide leadership*
• IBERDROLA RENOVABLES RECORDS 2007 NET PROFIT OF €117.5 MILLION WITH GROSS OPERATING PROFIT UP 1.3%

The Company is now the 8th largest stock on Madrid’s IBEX-35 index following its IPO last December and has 1,373 MW under construction
IBERDROLA RENOVABLES recorded a 2007 net profit of €117.5 million, down 38% on the previous year, and a gross operating profit (EBITDA) of €564 million, a rise of 1.3% on 2006. Revenues rose 37% to €953 million and EBIT declined 7.3% to €347 million.  Results were adversely affected by a fall in wholesale prices in Spain and by lower wind power output during the fourth quarter in this country.

The figures only include the contribution during the third quarter of 2007 of the United Kingdom and United States assets of ScottishPower. The results in comparable terms — taking into account that contribution throughout the fiscal year — place turnover at €1,580.6 million (+2.8%), EBITDA at €777.3 million (-7.8%), EBIT at €432.7 million (-10.8%), and net profit at €164 million (-35.9%).

Gross margin increased by 1.5% to €1,136 million, propelled by an increase in production and despite lower prices in Spain and the exchange-rate effects. Investments stood at €1,977 million.

By business sectors, wind energy in Spain — which contributed 59.8% of total EBITDA — was affected by lower prices in the wholesale market, and by lower output in the fourth quarter, whereas in the United States and United Kingdom higher production and prices increased gross margin by 26% and 2.2%, respectively.

Last year was key for the Company, which became the eighth largest company on the Ibex 35 by market capitalisation after its IPO last December. Furthermore, IBERDROLA RENOVABLES completed in record time the integration of the UK and U.S. assets of ScottishPower, a company acquired in April. The prospects for this fiscal year are positive, because wholesale prices in the Spanish market have shown an upward trend in January 2008, exceeding those of last year by 16.5%.

Likewise, IBERDROLA RENOVABLES has significant capacity under construction (1,373 MW), together with a large pipeline of projects and investment costs covered by long-term supply agreements. Another aspect that will propel business will be the European Directive to Develop Renewable Energy, whose objective is to reach a 20% share of primary energy in 2020.

World leader in wind energy by installed capacity
At the end of 2007, IBERDROLA RENOVABLES achieved an installed capacity of 7,704 MW, representing an increase of 74% (+19,5% in comparable terms ) over the figure of 4,434 MW at the end of 2006. Of this capacity, 7,362 MW relates to wind energy and 342 MW to mini-hydroelectric plants.

The Company, which over the past year consolidated its leadership of the world wind energy sector in terms of installed power, now has 4,570 MW of capacity in Spain, of which 4,228 MW is from wind farms.

In addition, the IBERDROLA subsidiary multiplied sevenfold its installed power outside Spain, which is up from 440 MW at the end of 2006 to 3,134 MW for the past year. Of this capacity, 2,145 MW are located in the United States**, mainly thanks to the contribution of the PPM Energy affiliate, and 382 MW in the United Kingdom, from of ScottishPower.

The distribution by country of the remaining 607 MW, almost all in Europe, is as follows: Greece contributed 217 MW; France, 125 MW; Poland, 105 MW; Germany, 60 MW; and Portugal, 50 MW.

IBERDROLA RENOVABLES closed 2007 with a project pipeline totalling more than 42,000 MW, a figure 2.3 times greater than the 18,431 MW with which it ended the previous year. This represents an excellent foundation for future growth.

More than half of the IBERDROLA subsidiaries’ projects are now located in the United States (21,991 MW of wind energy). Spain accounts for 17% of the total (6,397 MW of wind energy and 809 MW through other renewable energy such as biomass or solar), with a contribution of 13% from the UK (5,412 MW of wind energy) and 18% from the rest of the world (7,346 MW of wind energy and 98 MW through other renewable technologies).

In this regard, it is worth noting that the Company’s Strategic Plan provides for the investment of €8.6 billion between 2008 and 2010 in order to install a further 2,000 MW a year and achieve 13,600 MW by the end of the period.

During 2007*** the Company produced 14,708 million kWh, an increase of 87% ( +14,3%  in comparable terms) over the 7,867 million kWh generated in the previous year. Of this total, 12,545 million kWh were produced from wind, 541 kWh from mini-hydroelectric schemes, and 0.3 kWh million from other technologies (mainly solar).

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* Source: New Energy Finance (May 2007)
** Includes 606 MW belonging to a third party under an energy sale contract
*** Includes 1,621 million kWh generated by 606 MW of capacity owned by a third party under an energy sale contract and pro-forma data
IMPORTANT INFORMATION

This announcement is not an offer for sale of securities in the United States, Canada, Japan or Australia, nor in any other jurisdiction whose applicable laws forbid offers or sales of securities. Securities referred 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. Iberdrola Energías 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

FORWARD-LOOKING STATEMENTS

This communication contains forward-looking information and statements about Iberdrola Renovables, S.A. 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. 

Although Iberdrola Renovables, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Iberdrola Renovables, S.A. 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., 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. These risks and uncertainties include those discussed or identified in the Spanish Folleto verified by the CNMV on November 22, 2007.

Forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of Iberdrola Renovables, S.A. 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. 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. on the date hereof. Except as required by applicable law, Iberdrola Renovables, S.A. 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.