UPDATE 1-Iberdrola happy with debt levels, Gamesa stake

* Renewables unit sees net debt at below 4 bln eur in 2009

* Parent does not see financing problems in future

* Says happy with 14 percent of Gamesa

* Optimistic about new renewables regulation for Spain

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VALENCIA, Spain, June 9 (Reuters) - Spain's largest utility Iberdrola (IBE.MC) is comfortable with both its level of borrowing and its current 14 percent stake in wind turbine maker Gamesa (GAM.MC), Chairman Ignacio Sanchez Galan said on Tuesday.

"Iberdrola does not have financing problems," Galan said at a press conference ahead of renewable energy unit Iberdrola Renovables' IBR.MC AGM on Wednesday.

Galan said Iberdrola, which has a 34 billion euro debt pile, has an average life of borrowing of five to six years and has access to over 9 billion euros of additional financing.

Iberdrola is poised to enter the expensive business of building nuclear power plants in Britain and analysts have not ruled out the company issuing shares to pay off part of its sizable debt or finance future projects.

Turning to Renovables, Galan said the unit had reaffirmed its forecasts for at least 390 million euros net profit and double-digit core-earnings growth in 2009.

"We see (Iberdrola Renovables') net debt at 3.8 to 4 billion euros by the year end (up from 3.4 billion at the end of the first quarter), which is very manageable," Galan said when questioned whether Renovables could issue shares to cut debt.

HAPPY WITH GAMESA

Galan ruled out any additional stake reductions to its 14 percent stake in Gamesa, after Iberdrola sold 10 percent of the wind turbine maker and strategic ally last week.

"Gamesa is a strategic company for Iberdrola ... we are happy with our current holding, it is a level we have frequently held," Galan said.

Iberdrola's decision last week to sell part of the wind turbine maker surprised investors who saw the Gamesa stake as strategic, but contributed significantly to achieving Iberdrola's plans to sell 2.5 billion euros of assets in 2009.

OPTIMISTIC ON NEW REGULATION

Galan said he is confident that Spain's coming regulatory review for renewable energy will provide the stability needed for Renovables to continue with its investments in Spain.

The chairman said he expects all of Iberdrola's planned windfarms to be accepted into the government's new obligatory register for project developers, which will be vital for projects seeking the premiums paid to renewable energy generators.

"I think the regulation will be excellent at preventing speculation in renewables, there were too many individuals buying permits for projects just to sell them on to third parties," the chairman said.

Iberdrola Renovables forecasts achieving 10 gigawatts of capacity on stream by the end of June, well on its way to meeting its target to have 10.9 GW on stream by the end of 2009, and continues to focus its expansion on U.S. and European markets.

"We are only looking at countries with stable regulation. Our focus is the U.S and the EU, and that takes up over 90 percent of our investment effort," Galan said. (Reporting by Jonathan Gleave; Editing by Jon Loades-Carter)