Gamesa Corporacion Tecnologia SA (GAM.MC) shares rose Tuesday after it announced agreements with Chinese utilities Guangdong Nuclear Wind and Datang Renewable Power to develop and supply wind turbines with 1,315 megawatt capacity between 2010 and 2013.

After the announcement of the deal, estimated to be worth in excess of EUR1 billion, Gamesa shares surged 6.8% to EUR5.55 at 1339 GMT, while Madrid 's IBEX-35 index fell 0.33%.

Gamesa and Guangdong will jointly develop and build wind farms in the provinces of Liaoning , with capacity of 576 MW, and in Heilongjiang , with capacity of 450 MW, the company said in a release. Gamesa also signed a deal with Datang to build 289 MW capacity of wind power.

Gamesa didn't disclose how much the deals were worth.

Estimating the average cost for wind turbines by European manufacturers in China at around EUR800,000 a megawatt, rising to EUR1 million/MW if installation is included, Societe Generale analyst Didier Laurens valued the two deals combined at about EUR1.32 billion.

"If you announce an agreement with two of those large [Chinese] players, obviously it is very important," Laurens said, adding the deals come "in line with Gamesa's expansion plans in China."

"One of Gamesa's goals is to cement its position as one of the top five players in the Chinese wind energy industry," Gamesa Chairman Jorge Calvet is quoted as saying in the release. Calvet spoke at a conference on Chinese wind energy at the Shanghai Expo 2010.

Gamesa expects the Chinese market will in 2011 account for more than 30% of its turbine sales measured in electricity generating capacity, compared with 15% in 2009.

With capacity additions of 13 gigawatts, China expanded wind power faster than any other country in 2009. At the end of last year China reached an overall installed capacity of 25.1 GW, second only to the U.S. , according to data earlier this year from the global wind energy council.

Gamesa said it will supply all the turbines for the wind parks to be developed jointly with Guangdong with its G8X-2.0 MW model and its G5X-850 kW model. For the deal with Datang, Gamesa will install the G8X-2.0 MW turbines, which it will manufacture in China .

The Spanish company will keep a small minority participation in the new Chinese wind parks.

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