The strategic agreement between Gamesa and Iberdrola Renovables will see the two companies independently develop their wind energy portfolios under the supervision of a joint Consultative Committee for the next two years, according to the announcement.

Even though the agreement was signed back in June 2008, it hasn't been put into motion until now. Amendments have been introduced to the technical terms and conditions, which allows the value of both companies' project portfolios to be maximized. Even though both companies will develop their wind projects autonomously, they will be cooperating closely over the next two years, with the "help" of the Consultative Committee made up of three senior executives from each company. The Committee will be responsible for supervising the execution of the agreement through June 30, 2011.

After this date, assuming all conditions have been met, the put and call options on Gamesa Energia's wind energy promotions will be activated within the territory defined in the agreement. Iberdrola Renovables will either acquire the business outright, or opt for a joint venture ownership (75% Iberdrola, 25% Gamesa), in order to manage the project portfolio on the territory. In both of the mentioned scanarios, Gamesa employees working on these projects will be transferred to Iberdrola Renovables.