The award will be made under the auspices of Scotland's marine energy Saltire Prize, which will see 10 million awarded to the team that can demonstrate, in Scottish waters, a commercially viable wave or tidal stream energy technology that achieves the greatest volume of electrical output over the set minimum hurdle of 100GWh over two years.
The new annual Saltire Prize Green Energy Award, sponsored by industry body Scottish Renewables, will recognise outstanding contributions to the development of wave and tidal power. A competition has also been launched to design the Award medal.
The inaugural Award will be presented at Scottish Renewables' annual conference next March.
First Minister Alex Salmond, pictured left, said: "The annual Saltire Prize Green Energy Award Medal will recognise some of the outstanding individuals and groups who are at the forefront of this great endeavour."