Approval for the 4MW project, to be located on the island of Lewis, was given by the Scottish Government.
The plant will be constructed of a 250m long breakwater and 40 x 100kW turbines. Using Wells turbines, the plant is to be commissioned by late 2010.
wavegen is a subsidiary of voith-siemens Hydro Power Generation, being a member of the group's Ocean Energy division. RWE Innogy owns the utility npower.
The scheme would be eligible to receive revenue support via the Government's Renewable Obligation scheme.
The companies have been working on the project together since 2006. Wavegen has a grid-connected 500kW test plant for the technology on the island of Islay, and it began operations in 2000.
