The £28M Wave Hub project off the coast of Cornwall is funded by the South West Regional Development Agency (SWRDA) and is expected to be up and running by 2009.
Up to 30 wave energy devices are expected to be installed 16km offshore. These will link to an onshore substation via a sub-sea cable.
The plant will produce enough electricity for 7,500 homes and it is estimated that it will save 300,000 tonnes of carbon dioxide emissions over 25 years.
“This announcement is a huge step forward for Wave Hub and 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,” said SWRDA chairman Juliet Williams.