Europe's largest tidal turbine array will be built in the Pentland Firth after the Scottish Government gave the go-ahead to MeyGen Limited.
Welcoming the news, SNP MEP Alyn Smith said:
"This is a huge step forward for Scotland's ocean energy industry. Scotland is ideally located to take advantage of marine energy to provide clean, green electricity; it's like winning the natural resources lottery.
"This development is the first commercial deployment of tidal turbines in Scottish waters and we can look forward to many, many more imaginative developments coming our way. It's good to see the industry reaching the point where it can exploit the potential of the technology.
"It's an exciting time for ocean energy as it finally takes its place in our renewable energy mix. Scotland is once again leading the way in Europe."