Ngaanyatjarra Council Group has its eyes on a sustainable future for its community after a transformative hybrid renewable energy project was announced on Thursday.

A solar farm and battery system will be built to deliver power of up to 80 per cent renewable for the 176 people living in the community, 1,575 kilometres north-east of Perth.

The new power plant will eliminate use of high-cost, temporary diesel generation and deliver safer, reliable and cleaner energy to the remote WA community of Blackstone (Papulankutja), located on the Ngaanyatjarra Lands near the SA and NT borders.

NCG chief executive officer Thomas Williams said the groundbreaking green energy project give local communities reliable, clean energy.

"[The project] aligns perfectly with our broader sustainability goals of reducing emissions," he said.

The pilot project co-funded by the WA and federal governments through Horizon Power's 'Remote Communities' program - which covers the power services of 117 remote communities - would also lead to broader benefits for outback communities.

"By transitioning Papulankutja from diesel to a renewable microgrid, we will cut carbon emissions and energy costs," Mr Williams said.

"We also will now be able to reinvest in the community through local training and jobs, creating a sustainable model that will benefit our people for future generations."

Acting Horizon Power CEO Krystal Skinner said the renewable project was a huge milestone.

"This reflects our strong commitment to energy equity for Aboriginal people living in remote communities across WA," she said.

"We are proud to support the clean energy transition in partnership with First Nations people – grounded in respect, shared decision-making, and empowerment.

"This initiative is also a reinvestment in the community – building long-term capability and creating broader economic opportunities into the future."

The Australian Renewable Energy Agency will kick in $3.6 million for the state-of-the-art microgrid, with Blackstone selected as a pilot community to test the scalable, modular hybrid energy solution.

The Blackstone Hybrid Energy Project received a further $9.12m contribution from the WA Government.

If successful, the pilot project would become a blueprint for future design of other, similar-sized remote Aboriginal communities.

The Blackstone Hybrid Energy Project will consist of up to 778 kW of solar photovoltaic (PV) panels, a 2 MWh battery energy storage system and 400 kW of diesel generation, not only providing cleaner and more reliable energy, but also supporting the community's long-term resilience and sustainability.

Horizon Power said a Community Energy Fund would be established to share savings from the project to support community-nominated energy initiatives and return financial benefits directly to locals.

The company will also roll out a training program to develop local skills for ongoing operations and maintenance of the microgrid, creating employment opportunities within the Papulankutja community.

ARENA chief executive Darren Miller said the project showed renewable energy development and community empowerment could go hand in hand.

"The success of this project could serve as a blueprint for delivering accessible, affordable and clean energy to other remote First Nations communities," he said.

The Regional Microgrids Program is open for applications until December 2025 or until funds are exhausted. More information about the Regional Microgrids Program, including eligibility and how to apply, is available via the ARENA funding page.