MADRID (Thomson Financial) - Spanish power company Iberdrola SA, the world's largest renewable energy operator, said Sunday it had signed an accord with the Abu Dhabi group Taqa on joint investment, including in oil and gas production.

A spokesman said the agreement signed in Abu Dhabi by Iberdrola (other-otc: IBDRF.PK - news - people ) head Ignacio Sanchez Galan and his Taqa counterpart Hamad al-Hurr al-Suwaidi marked the Spanish firm's entry into the exploration and production of hydrocarbons.

'The two companies will analyse the opportunities for investment and joint development in the fields of electricity generation, renewable energies and the upstream (activities) in the Middle East, North Africa, Europe and North America,' a statement said.

It quoted Sanchez Galan as saying the agreement fitted into Bilbao-based Iberdrola's 'strategy of internationalisation', notably in new markets like North Africa and North America.

It could allow Iberdrola to have more control over its supplies of gas for its power stations.

The accord came a week after Iberdrola announced plans to invest eight billion dollars (5.1 billion euros) in the United States between 2008 and 2010.

The firm is aiming to have a 15 percent share of the U.S. wind power market by 2010, it said.

Sanchez Galan has said he considers the United States as the company's most exciting growth market for renewable energy sources as concerns over climate change and the rising price of oil boost demand for alternatives to fossil fuels.

Iberdrola posted a first-quarter net profit of 1.2 billion euros, up from 458 million euros over the corresponding period the previous year, due mostly to its purchase of Scottish Power.

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