ScottishPower has been given planning permission to build the world's largest generating capacity wave farm in Orkney.
Scotlands first minister Alex Salmond announced the approval for the farm, which is expected to generate power for 3,000 homes, while attending the opening of a new tidal test centre on Eday.
Commenting on the announcement, managing director of ScottishPower's renewable division Keith Anderson said the consent was a "landmark" moment in Scotland's renewable energy drive.
He explained: "Scotland has the potential to become the world leader in marine technology we have the best resources and are designing and constructing the best technologies.
"If we as a nation are to realise our renewables potential, and achieve our challenging renewable targets of 6GW by 2020, then the UK and Scottish Governments must continue to provide real commitment in terms of infrastructure, investment and political leadership."
While the construction of the new wave farm is expected to be completed by 2008, the energy supplier's 71-turbine windfarm is scheduled to be finished by 2010.
It is hoped that the £200 million project will create energy for 120,000 homes in the country.