For the past two years, Fremantle-based engineering outfit, Marine Research, has been working to produce a working scale model of a round device (about 40cm in diameter) that would sit up to 15m below water in areas known for consistent waves.

As waves roll over the unit, the downward pressure of the wave activates a pump which creates electricity and pumps seawater ashore. The seawater can then be turned into fresh water in a desalination plant. About 40 units, all linked together at a cost of $150 million, would produce about 100 megawatts of electricity.

Mr Burns said Marine Research has spent about $2.5 million developing the technology and is looking forward in the New Year to getting additional funds from a large backer. So far, West Perth-based Carnegie Corporation has provided a large percentage of the funding.

Mr Burns said recent studies by the World Energy Council showed twice the amount of electricity generated in the world could be generated by wavepower. In addition, studies also show WA's south coast to be ideal location for such wave-generated power scheme.