The announcement means that wave and tidal device developers in the UK will receive increased help from the government to help bring technology into mainstream development.

Wave Hub, the largest wave device testing facility in the world off the coast of Hayle, has welcomed the proposals. Wave Hub general manager Claire Gibson said: “The wave energy industry will welcome the announcement because it helps close the economic viability gap, which remains the biggest stumbling block to the commercial deployment of wave devices.

“That’s good news for Wave Hub because it means that device developers can rely on a much more supportive subsidy regime for the electricity they generate once they have a device in the water.”

The long-awaited review of the Renewables Obligation Certificate (ROC) scheme includes a raft of changes to how clean technologies are subsidised.

It includes an increase in the number of tradable ROCs awarded to wave and tidal energy projects from April 2013 from two ROCs per megawatt hour currently, to five ROCs per megawatt hour.

Chris Huhne, UK Secretary of State for Energy and Climate Change, said wave and tidal were examples of technologies which “desperately need help to reach the market”, which is why support is being increased.

Other more established forms of renewable energy, such as onshore wind, will see subsidies reduced.

The UK Government will consult on the proposed new regime between now and January 12 next year.

The Renewables Obligation was introduced in 2002 in England and obliges UK electricity suppliers to source an increasing proportion of electricity they supply to customers from renewable sources.

Operators of accredited renewable generating stations can then trade the ROCs with other parties, with the ROCs ultimately being used by suppliers to demonstrate that they have met their obligation.

Further information available at: www.decc.gov.uk