Ministers have given the go ahead for the biggest wave energy project in the world, capable of generating electricity for around 2,000 homes.

The project, owned by ScottishPower and operated from the European Marine Energy Centre in Orkney, will consist of four 750 Kilowatt Pelamis wave energy converters.

First Minister Alex Salmond made the annoncement at the opening of EMEC's tidal test centre on the Orkney island of Eday. He said: "This project is another step towards fulfilling Scotland's huge renewable energy potential. Our natural resources mean we can be a world leader in new wave and tidal energy technologies.

"The Scottish Government will support these new technologies, wherever possible, increasing sustainable economic growth and helping tackle climate change. The revolutionary work of the European Marine Energy Centre is a perfect example of how we can deliver the economic and environmental benefits of renewable energy for generations to come."

CRE Energy Ltd, a subsidiary of ScottishPower, applied on June 29, 2007 for consent to construct and operate a multiple wave energy converter at the European Marine Energy Centre, Billia Croo, Orkney.