The solar farm will be built with a €217m ($233.6m) investment in the municipality of Villalba de Guardo in the province of Palencia.
The facility will feature more than 630,000 modules and will generate enough energy to power 180,000 homes a year.
Iberdrola said the facility will have a ‘significant’ local component and estimates that up to 850 industrial suppliers will be involved in the project during peak periods.
In a statement, the company said: “(The project) will also have a regional vision; the substation will be built by the Salamanca company Tecinsa and the metal supports of the plant’s structure will be built by Made Tower, located in Medina del Campo, Valladolid.
“In addition, different regional and national suppliers will produce different components or carry out their electrical infrastructures, such as the overhead line, which will be provided by the Asturian supplier Tensa, and the power transformers and isolating switches by the Andalusian company Hitachi and the Basque company Mesa, respectively.
“Investments in 100% renewable projects, boosting the business fabric and local employment based on green principles, innovation and support for entrepreneurship are the pillars on which Iberdrola is working to transform the region of Velilla del Río Carrión, which it is actively accompanying in its decarbonisation process.”
In a separate development, Iberdrola has started construction works on another solar facility, Virgen de Areños III.
The 50MW Virgen de Areños III solar project is in the Acera de la Vega district of the municipality of Villota del Páramo.
It is being built with an investment of €27.5m and will have the capacity to generate 85,902MWh of clean energy a year.
Earlier this month, Iberdrola announced plans to build its first floating PV plant on Fernando de Noronha, Brazil.