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The Faroe Islands, aim at having all power production based on renewable sources by 2030. Wave power is a natural option, as the islands are situated in one of the world harshest wave climates. Here we investigate the power performance of various wave energy conversion concepts in the coastal Faroese waters. The wave climate around the islands is classified using several years of modelled data from MIKE 21 SW, which has been thoroughly validated by regional and nearshore measured data. Bivariate distributions of modelled significant wave height and peak wave period, at representative nearshore locations, together with the nondimensional power performance, are used to derive the power output from several wave energy conversion concepts. The results show that the waters around the Faroe Islands are well suited for wave energy conversion, although survivability and strong tidal currents might become an issue at some exposed sites.