India has potential to generate more than 8,000 megawatts of tidal energy, the renewable-energy ministry said Tuesday.

The Gulf of Cambay in the west has tidal energy potential of 7,000 MW, the Gulf of Kutch in western Gujarat state has about 1,200 MW and the Gangetic delta in the Sunderbans region in eastern West Bengal state has potential of about 100 MW, the ministry said in a statement.

Tidal energy converts energy from the movement of the ocean's tides into electricity but isn't widely used due to difficulties in accessing the required technology, high costs and limited locations.

The ministry said it is considering giving financial incentives of 50% of the project cost to state-run agencies for the development of tidal energy projects on a cost-sharing basis.

The ministry also said it has sanctioned a pilot project to set up a 3.75 MW tidal energy plant at Durgaduani Creek in the Sunderbans. The project is to be set up by the West Bengal Renewable Energy Development Agency and state-run hydroelectric power producer NHPC Ltd.

Besides, the Gujarat government has formed a unit to explore opportunities for tidal energy on its coastline and has signed an agreement with U.K.-based Atlantis Resource Corp. and the Gujarat Power Corp. for a 50 MW tidal energy project, the statement said.

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