North British Wind Power will build the wind farm which consists of 48 turbines with a total power generating capacity of up to 144MW.
Scottish energy minister Jim Mather said that the Fallago Rig site in construction is expected to create around 600 jobs and will represent a significant boost to the local economy.
"Once up and running, the wind farm is expected to achieve carbon saving of thousands of tonnes of carbon dioxide each year," Mather said.
The Scottish government’s target is to meet 80% of electricity demand from renewables by 2020.
There is over 7GW of renewables capacity installed, under construction or consented around Scotland, which will take Scotland beyond the interim target of 31% of its electricity demand from renewables by 2011.
