Food and facilities company Sodexo is seeking permission from Highland Council for a camp for SSEN workers in Broadford, Skye, while they are working on a new electricity line connecting to the Western Isles.
The development is to add to the population of the town of around 1000 people for an estimated five years.
The revelation was heard by Broadford and Strath Community Council at a public meeting on Wednesday night.
Locals have concerns that the camp may place excessive burden on resources, sewage systems and services in the south of Skye when services are already stretched.
Sodexo defended the plan, telling the meeting the camp will relieve housing and medical pressures by providing both on site.
They also said they would design water and drainage systems according to SEPA standards.
Chair of Broadford and Strath Community Council, Rhona Coogan, said: “This planning application symbolises what we face as a small town and as an island.”
“There are going to be a huge number of applications and it is important that the community is heard by the official authorities.”
Planners have said they consulted locals and adapted plans based on concerns and hope to continue a working relationship with them and the local authority.
The camp will not happen unless permission is granted for the new electricity line by the Scottish Government.
However, this is expected to happen as SSEN has said the line needs to be strengthened to maintain electricity to Skye and the Western Isles.
Renewable energy developments are also set to rely on the new line to carry electricity into the national grid.