The project, which was started in 2010, includes the development and implementation of the advanced metering management (AMM) system for two million meters.
The smart meter program is aimed at developing a new open and interoperable solution based on the PRIME telecommunications protocol.
Itron said its solution supports smart metering functionalities and will also allow progress toward the smart grid.
Iberdrola, which is currently reading over 1 million PRIME meters per day, anticipates to reach the deployment and management of 2 million meters by the first quarter of 2014.
Itron general manager for Spain Oscar Márquez said the project is one of the important smart metering initiatives in Europe and marks a significant step for Iberdrola towards the building of the smart grid.
"Itron is proud to accompany Iberdrola in the scale up of this project and looks forward to reaching further milestones with this rollout," Márquez added.
