Highlands and Islands Enterprise and the OIC have welcomed the announcement of a Renewable Energy Enterprise Area for the north of Scotland.
Key sites within the enterprise area include Hatston and Lyness, where the local authority - backed by European funding - is developing new harbour facilities that will support the marine renewables sector.
In addition, HIE is creating six new industrial units at Hatston to meet the needs of tidal energy developers using the European Marine Energy Centre (EMEC) test site off the island of Eday.
Councillor Ian Johnstone, chair of Orkney Islands Council's Development and Regeneration Committee, said: "This is something the council has pressed hard for and I am delighted that in creating the Renewable Energy Enterprise North Area, the Government has recognised Orkney's importance to the development of this key economic sector.
"As the home of EMEC, Orkney is playing a global role in the development of wave and tidal technologies - a role that will increase greatly as commercial scale devices are deployed in Orkney waters and the Pentland Firth in the years ahead.
"Our investment in new harbour facilities at Lyness and Hatston highlights the council's support for marine renewables - and they are clearly identified as key sites in the new Enterprise Area.
"The next stage is for the Government to agree the specific financial incentives that will encourage businesses to invest at sites like Hatston and Lyness - creating jobs and boosting the economy of our islands.
"The creation of the Enterprise Area also strengthens our case for Orkney's designation as a Marine Energy Park, in recognition of our world leading role in the development of the new marine renewables industry."
The Renewable Energy Enterprise North Area will also focus on Arnish in the Western Isles and Nigg and Scrabster in the Highlands.
Director of regional development at HIE Carroll Buxton said: "HIE welcomes the introduction of Enterprise Areas which will stimulate and encourage early investment and development at key strategic sites in Scotland.
"Enterprise Areas are about making things happen faster. In the Highlands and Islands the initiative is targeting growth sectors, particularly renewable energy and life sciences, where there is considerable potential to create new jobs and economic growth across the region.
"HIE is ready to support investors to maximise the advantage of early development at the range of sites - which has the potential to stimulate further significant benefits for businesses and communities across our region."
In all, four enterprise areas are to be created in Scotland with an emphasis on dynamic industries with the greatest potential to create new employment opportunities, stimulate private investment and boost economic growth.
