Scottish and Southern Energy Renewables is planning a new 600-MW pumped-storage facility, sources report.
SSE Renewables has asked the Scottish government to approve the US$1.26 billion project, but the company says it won't reach a final decision about the facility's construction until 2014.
If built, it would be the first new pumped-storage scheme to be developed in Great Britain since 1974, when work began on Wales' Dinorwig project. It would also necessitate the construction of a new dam and upper reservoir at Loch a' Choire Ghlais.
SSE Renewables says the project would have minimal visual impact and would take about five years to construct.
The company also is working in wave energy development, having teamed with Alstom to develop a 200-MW project off the coast of Orkney, Scotland.