Western Australia's Kimberley region is set to get the state's first full-scale tidal energy power station.

The WA government has approved Tidal Energy Australia's plan to build a wave power station at Doctor's Creek, near Derby.

It will generate 40 megawatts of electricity - enough to power up to 15,000 homes.

But Environment Minister Albert Jacob says a contract for the construction of power lines to major population centres in the West Kimberley still needs to be negotiated for the project to go ahead.

AAP