Plans for the world's biggest wave energy project today were today given the green light by ministers.

The £4 million project, located in Orkney, will deliver enough power for 2,000 homes using a chain of four "Pelamis" wave machines.

The go-ahead was announced by First Minister Alex Salmond when he visited Orkney to open the world's first testing centre for wave and tidal energy.

The European Marine Energy Centre, located in Stromness and Eday, enables prototype devices to be tested round-the-clock, with seabed cables connecting the testing births to the national grid.

The wave energy scheme at Billia Croo is a project of CRE Energy, a subsidiary of ScottishPower, using wave energy devices built by a Leith-based firm, Ocean Power Delivery.

Mr Salmond 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."

He went on: "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."