Morawa Shire president Karen Chappel says she is excited about the potential of a new solar power station that has received Western Australian Government funding.

The Government contributed more than $3.5 million to build the station, which is expected to significantly improve the reliability of power in the mid-west.

The Morawa Shire believes the technology used is a breakthrough for renewable solar power generation, as it allows the plant to store the sun's energy.

Ms Chappel says the station will help support the growing community.

"We're very excited at the moment because ... instead of being a dream it's actually starting to look like it will be a reality," she said.

"It will actually be on land at the Morawa Agricultural College, just on the outskirts of town.

"That's the plan, I mean there still is a process for that to go through for that to happen but that's the current plan."

Ms Chappel says the project will facilitate mining developments and also provide local job opportunities.

"It'll be private partnership with Government funding and it will put a solar thermal power plant in the shire of Morawa and it will actually, in the long-term, assist with reliability of power," she said.