The contract has been awarded by Jasper Power Company as part of a project being led by US firm Solar Reserve.
Iberdrola will work with local contractor Group Five on the US$150 million contract, which includes equipment supply, engineering, assembly and start up of the plant, as well as operations and maintenance services for 15 years.
The consortium will also develop a 132kV overhead power line needed to connect the installation to the natinoal grid.
Located near the city of Postmasburg, in the Northern Cape province, the so-called Jasper PV Plant will occupy a 180-hectare site and will be equipped with over 325,000 polycrystalline modules.
The project forms part of South Africa Renewable Energy Independent Power Producer Procurment programme, which is targeting over 3GW of clean energy over five bidding rounds.