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Scottish and Southern Energy (SSE) plc will work with the University of Strathclyde to establish the centre in purpose-built premises, creating around 250 new high-value jobs over the next three years and safeguarding 70 more in the city.
Mr Salmond and SSE Chief Executive Ian Marchant confirmed the plans today after both attended the second meeting of the Energy Advisory Board, which brings together industry leaders to discuss issues across the sector.
The First Minister also met staff already working on a number of key onshore and offshore projects during a tour of the company's existing Glasgow offices.
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He said: "Renewable energy is at the heart of Scotland's new economy and society, alongside carbon capture and greater energy efficiency. Achieving our ambitions requires a strong partnership between Government, industry and the wider public sector.
"I'm delighted that Scottish and Southern Energy - the UK's largest generator of electricity from renewables - has decided to establish its Centre of Engineering Excellence in Glasgow."
The FM said this initiative positions Glasgow to be at the epicentre of a key strand of 21st century engineering, just as the city dominated the engineering ages of the past.
"The regional selective assistance that we are providing has helped secure a substantial economic boost for Glasgow and deliver a major development to strengthen Scotland's position as a global leader in low carbon energy," he said.
Mr Marchant said: "Our Centre of Excellence which will be known as CEERE will play a crucial part in helping SSE to realise its renewable energy goals in the UK, Ireland and elsewhere in Europe, helping to secure energy supplies and contributing to the development of a lower carbon economy."
Professor Jim McDonald, Principal of the University of Strathclyde, added: "If we are to address the challenges of climate change, rapid and widespread deployment of renewable energy technologies is critical. This new partnership reflects Scotland's potential to be at the forefront of the UK and European renewable energy sectors, creating new jobs and research and development opportunities."
(GK/BMcC)
