Plans are in place to build a new energy centre which will facilitate 702 properties in Broomhill.
The centre will provide heating and hot water through the Cube Housing Association District Heating project.
Previously, Cube has introduced district heating schemes in Collina Street in Maryhill and Gorget in Knightswood as part of the project.
The low carbon central heating system aims to reduce fuel poverty and is projected to deliver significant CO2 savings over its lifetime, including 2,008 tonnes of CO2 in its first year.
The Broomhill district heating initiative will be partly funded by a £5m loan from the Scottish Partnership for Regeneration in Urban Centres (SPRUCE) Fund, a joint Scottish Government and European Regional Development Fund initiative.
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The remaining finance will be provided by British Gas, who will also carry out the building and installation work.
The centre will include three 500kW wood pellet boilers with thermal heat stores, plus 1.5MW of condensing gas boilers to provide severe weather top up and standby energy sources.
In addition, underground heat mains, a new distribution pipe network and heating systems and metering will all be installed in the area.
Social Justice Secretary Alex Neil announced details of the Broomhill investment on a visit to Cube's Gorget district heating scheme.
He said: "This £10.6 million project will make a massive difference to the lives of hundreds of households in Glasgow, supplying heat more efficiently and saving people money on their bills.
"The district heating scheme will help tackle fuel poverty, be better for the planet and make homes in the Broomhill area warmer and cheaper to heat.
"From energy centres to business parks the SPRUCE fund is helping to regenerate areas by providing crucial investment that is supporting the economy and jobs and transforming our communities for the better."
Cameron Cook, Head of Origination for Amber Infrastructure in Scotland which manages the SPRUCE fund, added: "The Cube Housing Association District Heating project is a ground breaking initiative that will contribute greatly to the alleviation of fuel poverty across the homes it serves, as well as substantial environmental benefits through carbon dioxide savings.
"Amber and the SPRUCE Fund are delighted to be participating in the project, realising SPRUCE's ambitions to help develop social, economic, and green infrastructure in Scotland."
(LM)
