Abstract: The present invention relates to a wave energy converter, comprising: -a float; -an elongate spacer configured to connect the float to an anchoring at, on or to a floor of a water body; -wherein the float is configured to rotate as it moves along the elongate spacer due to waves and/or tidal movement of the water body; -wherein said float comprises an air chamber for: -a shaft that is rotatably suspended inside the float and having a holder configured to substantially arrest the shaft against rotation as the float rotates around the shaft; and -a generator that is arranged between the float and the shaft and that is configured to generate electrical power when the float rotates relative to the shaft; and -wherein the shaft is completely arranged inside the float and the air chamber shields the shaft and the generator off from the water body. The invention further relates to a method of generating electrical power from wave energy.