The companies did not disclose the financial terms of the 15-year contract.
Under the deal, Iberdrola will sell the entire output from the Tule wind power project, which is being built in the McCain Valley of eastern San Diego County.
The project, which is expected to be completed in late 2017, will feature 67 turbines on about 14,000 acres north of the town of Boulevard.
After completion, the wind farm will generate enough energy to meet power needs of about 40,000 average SCE homes.
The project is estimated to deliver more than $39m in local and state tax benefits over 25 years.
Iberdrola Renewables vice president Barrett Stambler said: "This project has been fully permitted for quite some time, so we’re very pleased our proven track record of experience developing, constructing, and managing wind projects in California pushed this across the goal line.
"We look forward to reliably providing clean power to SCE for its customers and expanding our long term relationship with them."
Iberdrola Renewables has recently signed a 11-year contract to supply the City of Riverside, California, with a package of seasonal peaking renewable energy products.
Riverside is planning to increase the share of renewable energy it sources to over 40% before 2020.
Image: Southern California Edison will buy the entire output of the 132MW Tule wind farm. Photo: courtesy of pakorn/FreeDigitalPhotos.net.