Project developer ScottishPower Renewables (SPR) says that the 10MW project in the Sound of Islay will be the first of its kind in the world and will play an important role in realising the potential of Scotland’s tidal resources.

SPR plans to install ten 1MW tidal turbines developed by Hammerfest Strøm, a company that is partly owned by Iberdrola, SPR’s parent company. It is investing around £40M in the project, according to reports.

Keith Anderson, Chief Executive of SPR said that approval of the project “moves the whole marine renewables industry forward in Scotland and the UK”.

Scotland is widely regarded as having the best tidal resources anywhere in the world and the government is particularly keen on promoting the development of marine renewable resources.

“ScottishPower Renewables’ array will work in harmony with the environment and use the power of the tides in the Sound of Islay to generate enough green energy to power double the number of homes on Islay,” said Scotland’s Cabinet Secretary for Finance and Sustainable Growth John Swinney. “There is simply nothing like it consented anywhere else in the world.”

A 300kW prototype of Hammerfest Strøm’s HS1000 tidal turbine has been operating off the coast of Norway for over six years. The company is currently constructing its first full-scale HS1000 unit for installation in the waters off Orkney later this year.

“The testing of the HS1000 machine in Orkney this year will help us to finalise our timetable for the demonstration project in Islay, but we will begin work on the project in 2012 and plan to have machines installed as early as feasible during the period 2013 to 2015,” said Anderson. “We fully support the Scottish government in their desire to develop a major marine renewables industry in Scotland and maximise jobs and economic potential.”

SPR has signed a commercial agreement with Diageo, one of the largest distillers on Islay, to provide electricity from the project to eight distilleries and maltings.

SPR is also developing a 95 turbine tidal project at Ness of Duncansbay in the Pentland Firth as part of the UK Crown Estate’s first marine energy leasing round. SPR has entered the Ness of Duncansbay project into the Scottish government’s £10M Saltire Prize for marine energy innovation.

“The understanding we develop from Islay will be essential in delivering the larger planned projects in the Pentland Firth,” said Anderson.