Plans to build an Australian-first renewable energy electricity grid for townships living amongst the World Heritage-listed Daintree rainforest are dividing the community, with claims the debate over clean energy is getting dirty.

Key points: The microgrid project has divided the Daintree community and sparked heated debate

The microgrid project has divided the Daintree community and sparked heated debate Environmental groups say the project may prompt more development in the pristine rainforest

Environmental groups say the project may prompt more development in the pristine rainforest The plan's proponents say it will bring power prices in line with the rest of the state

While some locals in the close-knit community would like cheaper and reliable power, others fear it will spark unsustainable development, as allegations of a propaganda campaign against the microgrid circulate.

The Federal Government last month committed almost $1 million for a feasibility study into the microgrid.

It would see power generated by new and existing solar panels fed into the microgrid and turned into hydrogen, which would power about 700 homes and be used for seasonal storage and large-scale generators.

The Federal Government has allocated nearly $1 million for a feasibility study, hoping the project would be shovel ready by next year. ( ABC News: Casey Briggs )

Daintree Renewable Energy was awarded the funding for the study and is adamant the grid will go ahead and the Federal Government will stump up the cost.

They also said it would bring power prices in line with the rest of the state and stop diesel pollution.

'Dirty tactics at play'

Daintree Renewable Energy president Russell O'Doherty said debate around the project was getting heated and dirty tactics had been used.

"Recently there was this letter drop, which was totally not factual," he said.

Mr O'Doherty said misinformation had been spread throughout the communities about potential development of the region.

"This is cutting edge technology — brand new, out-of-the-box basically — and for someone to think they know all about it, they're fooling themselves."

Mr O'Doherty said claims the microgrid will prompt more development was "total rubbish" because there were few freehold lots left to develop.

He hoped the community could come together on the issue and become an ecotourist destination.

"How can you be an ecotourism destination when all the businesses are running huge diesel generators 24/7?" he asked.

"It doesn't make sense."

But despite the promise to reduce pollutants, local environmentalists are against the project.

Environmental value needs protection

Former Douglas Shire mayor Mike Berwick said the project will open the rainforest area up to unsustainable development.

His concern is that making power more readily available will incentivise new businesses and residents to move into the area.

"Putting in infrastructure that will promote development before the conservation measures have been put in place may well damage the environmental value of this place," he said.

Mr Berwick and Ms Kerr are concerned the project will lead to unsustainable development. ( ABC News: Jesse Thompson )

"This isn't a suburb of Cairns where you're just trying to reduce fuel consumption.

"The big issue is not whether it's renewable or not — it's what it's going to do to the area's scenic, scientific, environmental values."

Daintree Coast Environment Network spokesperson Connie Kerr said most resident have sufficient energy supply.

"If I use the property that I am in at the moment as an example — the system that is there with solar panels, batteries, back-up generator — it feeds the house very sufficiently with power needs," she said.

"I can't see any reason in the system that we have at the moment that I would be considering connecting into a grid system as it's sufficient as is."

Power costing some locals more than $40,000 a year

For the hundreds of people who call the area home, grid-based electricity is a luxury given up once they cross the Daintree River.

They are cut off from the Ergon network, relying on a mix of solar, battery storage, and diesel fuel generators.

When announcing the study for the microgrid, the Federal Government estimated that about 4 million litres of diesel is burnt in the region each year.

Cafe owner Mr Mason said there is little alternative to generators and diesel for his business. ( ABC News: Jesse Thompson )

Daintree cafe owner Lawrence Mason said for some businesses their premises are too shaded for solar to be useful.

To run his cafe, he said solar would be too costly, needing about $300,000 worth of solar panels and equipment, so instead he opts to run a diesel generator.

His dual generator system burns through about 700 litres of diesel a week, costing about $40,000 a year.

"Last year we had two alternators fail — [which cost] $20,000," he said.

"Our two biggest expenses here are insurance and electricity."

It is estimated that, at most, several hundred residents will use the microgrid.

The Daintree Renewable Energy is yet to release how much the final project would cost, but a recent report by the Australian Renewable Energy Agency of a similar infrastructure project commissioned in the area would come in at $65 million.