Southern Spain and Portugal, generally cold place (7)
I believe the answer is:
siberia
'generally cold place' is the definition.
'southern spain and portugal' is the wordplay.
'southern' becomes 's' (abbreviation).
'spain and portugal' becomes 'iberia' (I've seen this in another clue).
's'+'iberia'='SIBERIA'
(Other definitions for siberia that I've seen before include "Area of eastern Russia" , "chosen by Putin for no-frills travel?" , "Large E. Russian region" , "Russian far-east" , "Vast Asian region of Russia" .)