Renewable energy is expected to end Kalbarri’s electricity supply woes after the State Government announced a $6 million “microgrid” would be built near the popular holiday town.

Business owners, residents and regular tourists to Kalbarri have endured years of power outage problems.

In 2014, the town lost power for more than 80 hours over three months.

“This is frustrating, costly and annoying for the people who live and holiday there,” Energy Minister Ben Wyatt said. “This solution will remove 95 per cent of all power outages.”

Western Power, Carnegie Clean Energy and Lendlease have teamed up to design and build a five megawatt battery storage system charged by wind and solar power. A dozen other remote WA communities are being considered for similar microgrid technology.

“I expect microgrids to be the way of the future,” Mr Wyatt said. “We have a large percentage of the cost base for our electricity supply servicing people on the edge of our grid.”

Carnegie chief executive Michael Ottaviano said more than 40 companies bid for the microgrid project, which would deliver the biggest battery anywhere in WA’s electricity grid.

“This is a cutting-edge solution to an age-old problem that WA has,” he said.

Western Power chief executive Guy Chalkley said the announcement was a “step into the future”.

“This is an opportunity to improve Kalbarri and many other communities,” he said. “They have the opportunity to have the same level of reliability that we feel in a major city when we get up in the morning.”

He said the community was consulted and wanted a solution that was 100 per cent renewable, given it strives to be an eco-tourism town.

Kalbarri business operators have long complained about the outages and criticism they get from tourists when hospitality services are interrupted.

The microgrid will be built 20km south of Kalbarri and the existing wind farm will incorporate solar energy from residential solar panels.

Mr Wyatt said the microgrid battery, without wind or solar, could supply power to Kalbarri for up to two hours.

“The majority of outages in Kalbarri are under an hour, so this battery would remove that,” he said.