Plans for a 27 turbine scheme at Whiteneuk near Corsock have been ditched.
Swedish firm Vattenfall had been working on its proposal for several years and originally wanted to put as many as 35 turbines on the site.
However, it has now scrapped the scheme after being unable to get land needed for “an ambitious habitat management scheme”.
A spokesman said: “Following detailed assessments, research and engagement with stakeholders, Vattenfall has taken the decision not to progress the project at this time.
“Vattenfall’s plans to develop a wind farm at Whiteneuk included an ambitious habitat management plan. Unfortunately, we were unable to secure the land that this would have required.”
The move has been welcomed by the Save Our Hills pressure group which opposed the plans.
Spokesman Iain Milligan said: “People and businesses who would have been greatly impacted by this development will be relieved that the plans have been withdrawn by the company.
“And while there has been some good news both with this and the rejection of the Garcrogo application, it’s not a time for complacency.”