Recommendation also asks for fresh look at the levels of support available under the renewables obligation; It calls for the treasury to do more to help the sector, including the release of the fossil fuel levy surplus funds to help promote renewables in Scotland.

Cabinet Secretary for Finance and Sustainable Growth John Swinney said: “With unrivalled marine resources and a range of wave, tidal and offshore wind development already underway, Scotland leads the way in generating energy from the sea.

“The GBP10 million Saltire Prize continues to attract global interest in the marine energy potential around our coast. We also have publicly funded world leading testing facilities here in Orkney which are hosting wave and tidal devices built with Scottish government support.

“Marine energy will be key to Scotland’s future energy mix and that’s why we changed our support mechanisms to give greater assistance to wave and tidal energy in Scotland than anywhere else in the UK.

“The report, put together by industry, highlights the actions it believes we need to deliver a commercial scale industry. It confirms there could be 12,500 Scottish jobs in marine renewables by 2020, a huge boost for the economy and a long term platform for sustainable growth.

“Industry recognises, as this government has always believed, that the Treasury should unlock Scotland’s share of the fossil fuel levy – currently over GBP150 million – to allow us to give additional support to our renewables industry, the economy and environment.

“This report is an excellent example of collaboration in the public and private sectors. The recommendations are very much industry driven and we will consider their views very carefully as we continue to build a world leading renewables sector.”

The Marine Energy Group is part of forum for renewable energy development in Scotland and works to accelerate delivery of marine energy to provide a contribution to the sustainable economy and environment of Scotland. Its members are:

Sian McGrath, Aquamarine Power (co-chair)

Lynne Vallance, Scottish Government (co-chair)

Mike Barlow, Scottish & Southern Energy

Graham Bibby, AWS Ocean Energy Ltd

Alistair Birnie, DOF Subsea UK Ltd

Duncan Burt, National Grid

Robin Burnett, Airtricity Inc. [from June 2009]

Morna Cannon, Scottish Renewables/Scottish Government

Gareth Davies, Aquatera

Karen Fraser, Scottish Government

Phil Gilmour, Scottish Government

Neil Kermode, EMEC

Audrey MacIver/Elain Cameron, Highlands & Islands Enterprise

Tom Mallows, The Crown Estate

Robin McGregor, Lunar Energy Limited/Christie Griffith

Alan Mortimer, ScottishPower Renewables

Paul Neilson, Scottish & Southern Energy

Brian Nixon, Scottish Enterprise

Paul O’Brien, Scottish Development International

Matthew Seed, Wavegen

Robin Wallace, University of Edinburgh

Richard Yemm, Pelamis Wave Power Limited