The "world's number one" wave-energy testing centre has been given a £4.1 million expansion grant by the Scottish Government.
The European Marine Energy Centre (EMEC) in Orkney has received £3 million for a new berth to test wave-power devices and £1.1 million to test support vessels serving the energy industry in the area.
The money was announced at the RenewableUK Wave and Tidal Conference in London by Scottish Energy Minister Fergus Ewing.
"EMEC is the number one centre in the world for testing marine devices and it is vital that we maintain that lead and continue to reap the economic benefits," he said. "Since EMEC was established in 2003, the marine industry has created around 250 jobs on Orkney."
The new berth will help EMEC meet the increased market demand for its services. The money for sea trials of the support vessels will enable them to be tested safely and cost effectively.
A memorandum of understanding has also been signed between South West Marine Energy Park, in England, and Pentland Firth and Orkney Waters Marine Energy Park to encourage collaboration.
The funding was announced before talks between First Minister Alex Salmond and the European Union's commissioner for energy, Gunther Oettinger.
Mr Salmond said: "As the commission prepares to lead a debate on energy and climate targets for 2030, renewables must feature strongly in what emerges.
"Working with the EU and our other partners in Europe, the Scottish Government will continue to support the research and development of key energy technologies, creating jobs and investment in Scottish communities, while playing a full part in the development of a secure and increasingly decarbonised European electricity industry. Our support for leading centres such as EMEC and the Scottish European Green Energy Centre in Aberdeen underlines that commitment."
WWF Scotland director Lang Banks said: "This is a fantastic vote of confidence in the marine renewable industry in Scotland by Scottish ministers, and comes hot on the heels of financial backing from UK Government sources. There is a massive amount of power in our seas and Scotland is well placed to lead in developing the technologies to turn this potential into clean, green electricity."