UK tidal energy firm Marine Current Turbines (MCT) has announced that it plans to install the world's first commercial scale, grid-connected tidal energy generator at Strangford Lough in Northern Ireland late next month.

A spokesman for the company confirmed that "weather allowing" the 1.2MW SeaGen tidal system would be installed after Easter and is expected to generate enough electricity for 1,000 homes.

"To get the system in the water will be a real boost to the industry as a whole," said a spokesman for the company. "There have been smaller devices deployed in the past, but they have been prototypes. This is the first grid connected device that will be to commercial scale – by that we mean the device going in the water next month is essentially the system we will be using in planned tidal farms."

The Strangford Lough project had originally been planned for last year, but the company faced problems with the barge intended to transport the generator into the Lough. The system has now been modified and a new barge found and barring any last minute glitches the 14 day installation project is scheduled to begin on March 23.

The plan was announced as MCT and energy giant npower last week revealed they have teamed up as part of a project to build a 10.5MW tidal energy farm in an area off the coast of Anglesey known as the Skerries

The two firms have formed a new company to manage the project called SeaGen Wales and are predicting that with successful planning approval and financing the project should commissioned as early as 2011.

MCT's spokesman said that the planned farm would feature seven SeaGen systems and generate enough electricity for approximately 6,000 homes. He also predicted that the lessons learnt in the Northern Ireland project combined with improved economies of scale would result in the project costing £20m to £30m, compared to the £10m spent to install the Strangford Lough system.

The announcements come as the government faces fresh criticism over its support for the marine energy sector.

According to a new report from manufacturers trade body EEF and consultancy Deloitte, the government's £50m Marine renewables Deployment Fund has largely failed with the £42m earmarked for grants to firms deploying marine technologies attracting just two applications, both of which were rejected.

Experts claimed the fund was far too small to provide meaningful support to the marine renewables industry and that the criteria for qualifying were too tight for many firms to access the cash.

Stephen Radley, chief economist at the EEF, said that the report showed there was massive potential for UK manufacturing firms to exploit the country's strong renewable energy resources, but that greater support was needed from the government in the form of more effective incentives.

"As a country the UK does not spend enough on energy R&D and we don’t provide investors with sufficient security," he said. "The government has to address both these issues if it wants to meet the demanding EU targets."