Energy Minister Jim Mather, MSP, says that with as much as a quarter of Europe's tidal energy resource and a tenth of the potential wave capacity, the powers of Scotland's seas are unrivalled in Europe.

Nearly a quarter of our electricity demand comes from renewables, yet we could power Scotland many times over with that potential. It’s clear that 2010 is shaping up to be another landmark year for renewables in Scotland.

I was particularly delighted in March to see the world's first commercial wave and tidal leasing round awarded to 10 projects in the Pentland Firth and Orkney Waters. These project agreements could generate as much as 1.2 gigawatts (GW) of marine energy off Scotland’s north coast - enough to power up to 700,000 homes - and capital investment of up to £4billion in the next decade.

When the Marine Energy Group published its roadmap for the sector last summer, the industry forecast that one gigawatt of energy could be deployed around Scotland by 2020. This ambition is already within reach. We lead the world in developing these exciting new technologies - now we are the first country in the world to award commercial leases.  And to support the sector we have a £12million support scheme –WATERS – to provide essential R&D support.

In offshore wind Scotland must exploit the opportunities to lead the world in this dynamic new sector. We are in the enviable position that we already have 40 years of world-class offshore experience and expertise from the oil and gas sector. Expertise and experience that is transferable. Scotland is rapidly becoming the natural home for those who wish to develop and succeed in the offshore wind industry.

Through current leasing rounds, over 11GW of capacity is already planned. Even at conservative estimates, that’s enough power to meet the electricity needs of five million households. With the right support, a successful offshore wind industry offers the potential for 20,000 new green jobs and up to £30billion worth of investment in Scotland by 2020.

The first phase of the Scottish Enterprise led National Renewables Infrastructure Plan has identified the sites and facilities across Scotland that could support a booming offshore wind industry. And we have established the Offshore Wind Industry Group involving developers, public agencies, The Crown Estate and major players in the supply chain. That group will chart the aspirations, hurdles and opportunities for the sector’s development in detail over the next few months.

In March, I announced that the £10million Saltire Prize, our challenge to the world to push back the frontiers of marine energy, is open for applications.

The Prize - the biggest Government innovation prize in the world - will be awarded for the demonstration, in Scottish waters, of a commercially viable wave or tidal energy technology that produces at least 100GW of electricity over a consecutive two year period - enough to power 10,000 homes.

The prize will cement Scotland’s reputation as a global leader in marine energy technology while helping save the planet.

Since outlining the Grand Challenge in December 2008, we have had hundreds of enquires from 27 countries around the world and thousands of hits on the Saltire Prize website.

We have refined the final competition guidelines and The Crown Estate, as owners of the seabed, will run another leasing round in Scotland this summer specifically aimed at allowing potential Saltire Prize competitors to deploy their devices in Scottish waters.

The prize will be open to applications from teams from Scotland and across the world, encouraging European and global collaboration. We will encourage Scottish-based teams and we are also looking more widely to the international research and innovation community to participate in this adventure. This is a chance for the research community from all parts of the world to share in this unique opportunity - to strive for the winning prize whilst unleashing the tremendous sea power potential for the benefit of current and future generations.

Just as the seas around Scotland have made us one of the world’s hubs for oil and gas, so can they make us the global capital for offshore wind, wave and tidal technologies.

We will continue to promote Scotland as the place to come and invest in renewable energy technologies. The opportunities are enormous. The future is green.