The renewable energy project is expected to create 1,800 jobs and supply electricity to 7,500 homes in the south-west of England. Companies developing their own wave technology will also be able to test their devices at the site.
Juliet Williams, chairwoman of the regional development agency said the approval was a "huge step" for the development of the operation.
"It is a vote of confidence in the RDA's ability to create a groundbreaking renewable energy project in south-west England that will lead the world in the development of wave energy technology."
Permission for the creation of the wave farm project follows the announcement by Scottish ministers in February that funding had been made available for a wave energy farm based on Orkney.
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