The project, which will serve as a laboratory for grid integration technology and methods, was revealed by Spain's industry minister, Jose Manuel Soria.
Soria's duties include overseeing the signature on the joint venture, whichi is between Spain's Red Eléctria de España (REE) and China's National Energy Administration (NEA).
The agreement is the first solid step in March 2011's collaboration agreement between REE and NEA on grid integration.
REE will pass on its experience in handling Spanish wind power, currently at 22GW, in an electricity system with negligible interconnections. NEA and China's State Grid will provide knowhow in operating China's massive grid system.
REE and Gamesa declined to offer details on location, funding or other issues.