The Scottish government has granted planning permission to ScottishPower for its new wave farm project.
The GBP10 million project, which is designed to convert wave movement into electricity, will have four floating generators. The farm will be positioned off the coast of the European Marine Test Centre in Orkney, Scotland.
Expected to be operating by 2008, it will provide around 3MW of green electricity, enough to power around 3,000 homes.
Keith Anderson, managing director of ScottishPower Renewables, said: With the first ever planning consent granted for a wave farm, this is a landmark day in the development of renewable energy in Scotland.