EMERGING TECHNOLOGIES, THE PROTAGONISTS OF THE FUTURE

IBERDROLA RENOVABLES’ determined bet on innovation allows the company to continually improve the efficiency of its assets.

During 2008, IBERDROLA RENOVABLES continued to carry out the actions included in its 2008-2012 Strategic R&D Plan, which contemplates initiatives and projects in new technologies for the generation of energy from renewable sources. Throughout the year, the Company invested more than 12 million euros, almost 50% more than in 2007 (see chart 1).

PRINCIPAL INITIATIVES

Particularly worth mentioning in the area of new energy generation technologies are the

INVESTMENT IN R&D * (Millions of euros). Graphics Gallery 1 | 2

initiatives in connection with wave energy. Thus, in 2008, the Company opened the first wave-energy plant in Spain, located on the Cantabric coast at Santoña, where the movement of waves allows for the generation of electric power.