The contract was placed by the US firm Jasper Power Company for the project named Jasper PV photovoltaic plant, which is led by American company Solar Reserve.
The contract includes the development of the plant, the transformer substation and the feeder lines, along with 15-year operation and maintenance services.
Iberdrola will work on the project in consortium with South African company GROUP FIVE.
Meanwhile, the project, located in city of Postmasburg, in the Northern Cape Province, will feature over 325,000 polycrystalline modules spread across around 180 hectares.
Jasper PV is being developed under Round 2 of the Renewable IPP Programme of South African Energy Department that also includes the construction of eight photovoltaic plants and seven wind farms.
The main objective of this program is to achieve a total power capacity of 3,725MW through five rounds.