The £42m Wave Hub project off the coast of Hayle in Cornwall will go ahead as planned.
It was feared the scheme could become a victim of the freeze on European funds and the scrapping of the South West Regional Development Agency (RDA).
However the RDA said the alternative energy project was approved long before the cuts were announced.
The hub is a "socket" on the sea bed which will link wave-power devices directly to the national grid.
The RDA said it is expected to be the world's biggest wave energy test site.
The installation, 10 miles (16km) off Hayle, is due to take place within the next month.
The yellow steel structure will feed power from wave energy machines to an electricity sub-station in Hayle.
The project is expected to start delivering power to the grid next year.
An independent economic impact assessment has estimated Wave Hub could create about 1,800 jobs and inject £560m in the UK economy over the next 25 years.