Carnegie has received $1.5 million in progress payments from the Western Australian and federal governments.

It got $637,199 for completion of two milestones from the WA government under its low emissions energy development grant.

The payments were awarded for its progress on the mobilisation of the foundation installation vessel and progress on the pipeline components of the PWEP.

Carnegie also submitted milestone payment claims worth $867,165 for the completion of those milestones to the federal government under its grant from the Australian Renewable Energy Agency's emerging renewables program.

Yesterday the company announced the start of offshore foundation installation activities.

The foundation installation vessel Eunsung 1200 is onsite and installation activities are underway.

The PWEP will be Australia's first commercial-scale CETO - Carnegie's name for its wave energy generation system - grid-connected wave energy project.

CETO operates under water. Fully submerged buoys are tethered to seabed pump units.

The buoys move with the motion of the passing waves and drive the pumps.

The pumps pressurise water, which is delivered onshore via a subsea pipe.

Onshore, high-pressure water is used to drive hydroelectric turbines.

The high pressure water can also be used to supply a reverse osmosis desalination plant.

There is a desalination pilot attached to the PWEP.