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The purpose of this paper is to analyze the small signal stability of the Uruguayan power system on a short to medium term according to the scenarios for the years 2013-2017, in which the transmission network will undergo major changes: first, the inclusion of large quantities of wind power and secondly, the implementation of major infrastructure projects including the construction of the 500kV line from San Carlos -Melo 500kV and 150kV lines Artigas -Rivera and Tacuarembó -Melo of 150kV. In order to understand the global role that will play the integration of wind power in the small signal stability of power system, Uruguayan scenarios of maximum and minimum demand for the years 2013 and 2017 will be analyzed, considering and without considering the incorporation of wind power. 1

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This paper has two main objectives: to explain the dynamic characterization of wind farms as part of their integration in power systems using modal analysis and to present a qualitative development for understanding the main factors that impact on the damping of the oscillation modes by incorporating wind farms based on variable speed wind turbines. Moreover, such developments are validated by performing simulations on a 2017 peak scenario for the Uruguayan electrical system, showing a strong interaction between the hydroelectrics power plants located on the Río Negro and future wind farms Palmatir and Agua Leguas. 1