Spain - Gamesa and Iberdrola Renovables SA sign turbine strategic alliance

Spanish wind turbine maker Gamesa and renewable energy company Iberdrola Renovables SA on Friday signed a strategic alliance including a 6.3 billion euro ($9.7 billion) turbine supply deal.

Gamesa Corporacion Tecnologica SA and Renovables said the alliance was for the development and running of wind power parks in Spain and the rest of Europe for which two special purpose vehicles will be created.

Iberdrola said the turbine deal was the biggest in the history of wind power. It will buy turbines providing 4,500 megawatts, assuring 70 percent of its generator needs until 2012.

The alliance also includes the purchase by Iberdrola Renovables of wind power assets owned by Gamesa Energia in the UK, Mexico and Dominican Republic for 65 million euros.

Iberdrola Renovables (IBR.MC: Quote, Profile, Research) is the renewable energy arm of Spain's biggest utility Iberdrola (IBE.MC: Quote, Profile, Research), which owns 80 percent. Iberdrola owns nearly 24 percent of Gamesa.

The two companies, which already had contracts in place through next year, said the alliance was designed to reap advantages from pooling resources and to add value to Gamesa's Energia unit, which has previously specialised in setting up wind parks and selling them on.

Gamesa shares were up 1.7 percent at 32.86 euros by 1000 GMT while Renovables was 0.2 percent higher at 4.37 euros. Iberdrola lost 1 percent to 8.94 euros against an Ibex 35 index which was 0.6 percent lower.

Iberdrola Renovables is the biggest wind power producer in the world, with 8,164 megawatts of installed capacity of which 4,681 MW are in Spain.