This article focuses on the accuracy of satellite data, which may then be used in wave power applications. The satellite data are compared to data from wave buoys, which are currently considered to be the most accurate of the devices available for measuring wave characteristics. This article presents an analysis of satellite- (Topex/Poseidon) and buoy-measured significant wave heights for a 1-year period at Cape Sorell and Rottnest Island, off the Australian coast. The analysis found that the satellite-measured wave heights showed a slight positive bias. This is contrary to the findings of most other authors, who have analyzed data from the Northern Hemisphere and generally found a negative bias in the satellite-measured wave heights. The implication is that calibration functions to improve the correlation between the buoy and satellite data may vary for different hemispheres or even regions within these. (Contains 7 figures and 2 tables.)