A development application to build a $110,000 self-sustaining power supply in the mountain said the "main driver" was to get rid of powerlines.

"The line has a high risk of causing bushfires, is under-utilised and costly to maintain," the application said.

Instead, the park hoped to build an off-grid power supply using solar panels and batteries to power Gudgenby Homestead and Ready-cut Cottage.

Currently seven kilometres of overhead powerlines supply 11 kilovolts of electricity to the homestead which is rented out by the park to visitors.

The application said switching the homesteads to self-reliant power would ultimately allow utility-operator Evoenergy to decommission the power lines.

An environmental impact statement said there would be little impact by the project on the nearby environment.

The area is still showing signs of clearance from European farmers with the dirt in poor condition.

The site wasn't returned to the Commonwealth until the 1970s and it's believed heavy frosts as well as overgrazing from rabbits and roos has stopped native vegetation reclaiming the area, according to the application.

The power site would be built north of the homestead in what is already considered a disturbed area and would be designed to blend in with look of the nearby homesteads.

A commissioned environmental report said there would be no need to clear nearby trees and fill from ground clearing and digging would be "reused on site".

However, some Indigenous artefacts would have to be salvaged from the work site.

The development would have a series of solar panels with the batteries stored in a shipping container on site, according to the application.

In the end the whole system would be fenced off and surrounded by locally-sourced rock to reduce bushfire risks.