
Aquamarine Power showed off the new Oyster machine at Burntisland Fabrications (BiFab) yard in Methil where its 800kW flap has been built.
The device is said to be able to generate more than twice as much power as existing machines.
First Minister Alex Salmond was shown the Oyster before it is taken by barge to Orkney where it will operate.
The machine, which is delivering 250% more power than its first version, incorporates design improvements, which will make it simpler to install and easier to maintain.
Mr Salmond was joined at the unveiling by BiFab managing director John Robertson and Aquamarine Power chief executive officer Martin McAdam.
A Scottish government spokesman said: "This is an exciting time for Scotland's world-leading marine energy industry and today is another key moment in the journey to the commercial deployment of wave and tidal energy arrays that can harness the massive natural resources around our coast."
The Carbon Trust, which has financially supported the project, welcomed the unveiling of the latest Oyster device.
The trust's Dr Stephen Wyatt said: "Wave and tidal stream could provide a fifth of our electricity needs and be a major 'made in Britain' success.
"Our new analysis has found that the best marine energy sites could be cost competitive with nuclear and onshore wind by 2025. The wave and tidal sector could generate up to ?76bn to the UK economy by 2050, and could also generate over 68,000 UK jobs."
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