PARIS – Electricite de France, or EDF, said Wednesday it was creating a renewable energy unit in Brazil with the majority stake it acquired from Sowitec in a wind power portfolio with 800 MW of generating capacity.

The new unit, EDF EN do Brasil, will develop the portfolio jointly with Sowitec, which will retain a 20 percent stake in the portfolio, EDF said in a statement.

The first wind farm, which has 70 MW of generating capacity, is located in Bahia state and will start operating in late 2017.

Electricity generated at the wind farm will be sold to utility ANEEL under a 20-year contract.

Brazil is the 19th country into which EDF has expanded its renewable energy business and the new subsidiary will be headquartered in Rio de Janeiro.

EDF is “setting its first foot in the South American continent,” the director of the new unit, Antoine Cahuzac, said, adding that Brazil “offers considerable wind power potential and a favorable regulatory framework for a massive increase in renewable energy in the energy mix.”