A research report has identified two locations in south-western Victoria for potential above-water wave energy power generation.
The two areas, Warrnambool and Cape Nelson, were selected for their "wave characteristics", proximity to transmission infrastructure and separation from marine parks.
Technology developer Wave Swell Energy (WSE) commissioned CSRIO researchers to undertake the study, and they found Australia was on the cusp of a wave-power boom.
WSE just completed a successful 12-month trial of its UniWave200 prototype off King Island in Tasmania, where the device successfully supplied electricity to the island's microgrid.
The research reflects the notion that Australia's oceans could eventually complement wind and solar power.
WSE chief executive Paul Geason said the technology could help to reduce the price of renewable electricity and decrease dependency on battery storage.
"We're not suggesting wave energy will replace the necessity for batteries," he said.
"We are saying … it will reduce the necessity for the volumes currently projected in what are quite expensive storage solutions.
"One of the wonderful thing about waves is that they are more reliable and more consistent and less intermittent than other sources."
Mr Geason said the area of south-west Victoria saw some of the most "abundant" wave energy in the world.
"It's important, in order for this technology to be embraced, that we find opportunities for further deployment and installation," he said.
Mr Geason stressed it was "still very early days" for the technology and that there was an "extensive process" Wave Swell Energy undertook to find the right sites for the power units.
"We have extensive community engagement," he said.
"We don't in any way through the deployment of these units detract from the enjoyment of these coastlines and beaches.
"There will be a process of permitting and approval that will be required."
