The project, previously named Kildermorie, represents a £30 million investment by SSE and construction will start in late summer this year, and the expected completion date is autumn 2015.
The decision to go ahead with the project comes after the Scottish Government decided to retain the one renewable obligation certificate (ROC) in September, rather than fall in line with the UK’s 0.7 ROC level.
SSE’s managing director, Renewables, Jim Smith, said: “The support given by the Scottish Government retaining the ROC banding for new hydro effectively led to SSE’s decision to proceed with the Glasa scheme.”