IBERDROLA is awarded 16% of the capacity of interconnection

Tag : buy/sell contract

IBERDROLA is awarded 16% of the capacity of interconnection betweenItaly and Greece put out to tender for July

08/07/2008: IBERDROLA is awarded 16% of the capacity ofinterconnection between Italy and Greece put out to tender for July

-The Company takes another step in the process of internationalexpansion in the activity of energy trading.

-The Company will be able to transmit more than 29, 750 megawatthours (MWh) from one country to another during this month.

IBERDROLA has been awarded 16% of the capacity of electricityinterconnection between Italy and Greece put out to tender by theoperator Terna for July, which will enable it to transmit more than29, 750 megawatt hours (MWh) through an underwater cable from onecountry to another during this month.

This represents the second milestone achieved by IBERDROLA in orderto consolidate its presence in the liberalised Greek market, inwhich it began to operate three months ago after obtaining all thenecessary licenses. Specifically, the Company finalised its firsttrading operation in this country in March, with the sale of energyfrom Italy through the aforementioned underwater link, of 500 MW incapacity.

Along these lines, it is worth noting that IBERDROLA has alreadytransmitted more than 18, 000 MWh between Italy and Greece duringthe last three months. To develop these operations, the Company hastaken advantage of the knowledge acquired in the Italian market,where it has carried out trading activities since 2005.

In addition, the current prices of energy in Greece are favourableto the operations that IBERDROLA is carrying out in this region. Inthis sense, the country has become a very attractive market for theCompany, which considers it to have a large growth potential.

This contract award represents a new step in the process ofinternational expansion in the activity of electrical energytrading, which IBERDROLA began to develop more than 10 years agoand which it now carries out in 11 European countries: Spain,France, Germany, Italy, Holland, Belgium, Austria, Portugal,Switzerland, the United Kingdom and Greece.

Among the trading operations carried out by IBERDROLA in theelectricity sector, it is worth highlighting its participation inthe principal wholesale European markets, with an annual volume ofenergy negotiated superior to 67 million MWh; its presence in 12interconnections and in the cash (spot) markets of seven countries,and its award of virtual capacity in five regions.

IMPORTANT INFORMATION

This information does not constitute an offer to buy, sell orexchange, nor does it constitute the solicitation of an offer tobuy, sell or exchange securities. IBERDROLA, S.A. shares may not beoffered for sale or sold in the United States except through astatement of effective notification in conformity with theprovisions of the Securities Act or when a valid exemption from theobligation to provide such notification has been granted.