Uruguayan state electricity company, UTE, has selected Abengoa to build and operate a new 70 MW wind farm in Palomas, in the Salto region of Uruguay.

The $165 million project will strengthen Abengoa’s presence in Uruguay’s renewable energy sector and will generate enough energy to supply the whole of the Salto region.

Abengoa will contribute $6 million of equity to the project, which will feature 35 wind turbines. The region has abundant wind resources that are relatively constant year-round and without major fluctuations in speed.

Construction is due to start in early 2014 and will take 14 months, says Abengoa, which is building two other wind farms in Uruguay.