The Faroe Islands are aiming for 100% renewable electricity generation. The complexity of operational power systems with a high level of renewable generation necessitates accurate dynamic models. Many power systems, including the Faroe Islands, do however consist of generation units with old governors and automatic voltage regulators, in which suitable models and parameters are unknown. Obtaining dynamic models with parameters that replicated measurements proved to be challenging using existing procedures. Therefore, this paper presents an alternative and combined procedure for identifying and validating the controllers and parameters. The procedure utilises measurement data from trip tests, standard controller models, and an optimisation algorithm. The procedure also combines hybrid simulations and system-wide simulations. A successful application of the proposed procedure on the power system of the Faroe Islands is presented. The proposed approach can be applied to other power systems and is especially suitable for other island power systems of similar size to the Faroese power system.