More than £3m has been pledged to help reduce the costs of harnessing tide and wave energy by the Carbon Trust.
Tide and wave energy technology is expensive
The Scottish Executive believes the investment from the government-funded organisation will help Scotland lead the world in the industry.
At present the energy produced from the tide and waves is expensive because the industry is relatively young and development costs are high.
The cash will help fund research and improve technology.
Supporters of wave and tidal power say a fifth of the country's energy needs could come from marine sources in the future.
However, this relies on the price of the technology coming down.
Scotland has some of the biggest marine energy resources in Europe and it is hoped the money will strengthen the country's position as a world leader in the industry.