West Islay Tidal Energy Park will have a generating capacity of up to 30 MW, enough to power around 18,000 homes.

The DP Marine Energy Limited development will be located approximately 6 km off the south-west coast of Islay and will create up to 32 full time jobs.

Scottish Government minister for business, innovation and energy, Paul Wheelhouse, said: “Marine renewable technologies offer huge potential to the Scottish economy – and to rural communities throughout the world.

“Scotland has a third of UK’s tidal stream resources and two thirds of its wave resources. We are also home to the world’s leading wave and tidal test centre, the world’s largest planned tidal stream array and the world’s largest tidal turbine.

“The West Islay Tidal Energy Park builds upon this strong foundation. Its 30 turbine array will generate up 30 MW, enough to power almost 18,000 homes, helping us to generate more clean, green electricity in Scotland and to meet our climate change obligations.”

Lindsay Roberts, senior policy manager at Scottish Renewables, said: “Scotland is home to some of the most powerful tidal streams in Europe and already leads the world in the development of the cutting-edge devices which will allow us to harness their power.

“This announcement shows the continued ambition of this young sector as well as underlining the local employment and economic benefits which renewable energy can bring to some of our country’s most remote areas.”

Gina Hanrahan, acting head of policy at WWF Scotland, added: “Scotland’s growing tidal industry is hitting new milestones. With a third of Europe’s tidal potential, Scotland’s powerful seas have a significant contribution to make in the fight against climate change. The renewable energy transition is happening globally at a pace many thought impossible only a few years ago.

“If Scotland is to continue to reap the benefits of innovation, slashing emissions, powering communities and creating local jobs, the Scottish Government’s final Energy Strategy must ensure there are policies in place to replicate the progress we’ve made on renewable electricity in the heat and transport sectors.”