The Horizons/Gorwelion scheme will provide a platform for contemporary Welsh artists at events across Wales and through BBC radio.
Horizons will include the Launchpad Fund, a new platform to offer unsigned artists grants of up to £5,000 towards resources such as equipment, touring and studio time.
The Sounds of 2014 will showcase 12 unsigned Welsh artists or acts with the potential to break through into the mainstream.
BBC Cymru Wales will also broadcast live from over 10 major events across Wales each year of the two year project.
Rhodri Talfan Davies, director of BBC Cymru Wales, said: ‘This new scheme will provide a launchpad for Wales’ most exciting and promising music talents. It is much, much more than a fund – it offers Wales’ brightest emerging talent the opportunity to shine, to take the next step in their careers and to reach out to new audiences.
‘BBC Cymru Wales has a very proud tradition of finding and championing the most promising artists in Welsh and English. Right now there’s a real boom in Welsh music popularity with artists like The Joy Formidable, Yr Ods and Georgia Ruth going from strength to strength – and this partnership with Arts Council Wales demonstrates our commitment to supporting artistic excellence right across Wales.’
The scheme is a part of a public value partnership announced between Arts Council Wales and BBC Cymru Wales earlier this year.