The turbine, which is located in Shetland, will power up to 30 homes, a locally-owned ice plant and the Cullivoe Harbour Industrial Estate.
The turbine is situated at a depth of more than 100ft on the sea bed and consists of a propeller that is spun by the power of the tide. The rotating propeller drives a generator that produces electricity, which is then transmitted onshore via a subsea cable.
Energy Minister Fergus Ewing, attending the All-Energy Conference in Aberdeen, said: "For the first time, anywhere in the world, a community owned tidal turbine is generating electricity. It will have a positive impact on the North Yell community and economy.
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"Scotland is recognised as world leader in wave and tidal energy, with a quarter of Europe's tidal stream and a tenth of its wave-energy potential.
"We must tackle climate change and reduce our reliance on fossil fuels through better and more efficient uses of energy. That is why Scotland generated a record amount of electricity from green energy sources last year."
Robert Henderson, Shetland Islands Council and North Yell Development Council, added: "This is a tremendous moment for North Yell. For the first time anywhere in the world, electricity is being generated from a community owned tidal turbine.
"Having used as much local expertise as possible we're keen to see Shetland taking a leading role in marine renewables."
Simon Forrest, Managing Director of Nova Innovation, commented: "We are delighted to announce that the Nova 30 tidal turbine has been successfully deployed and is generating electricity to the grid.
"It marks a major achievement for the wider Scottish tidal industry with over 80 per cent of Nova's supply chain Scottish based."
The project has been developed by Leith-based tidal energy company Nova Innovation in partnership with North Yell Development Council, with funding by the Scottish Government's Community and Renewable Energy Scheme (CARES), Shetland Islands Council and North Yell Development Council.
(JP/CD)
