The project is being promoted with Strathclyde University and has attracted a £2.8 million grant from the Scottish Government.
The Centre of Engineering Excellence for Renewable Energy is to be constructed in the city centre, although the site has not yet been identified. Glasgow beat off competition from Europe, Ireland and other UK cities to attract the facility.
"The centre will play a crucial role in helping SSE realise its renewable energy goals," maintained chief executive Ian Marchant. "Glasgow's sustainable energy ambitions make the city an appropriate choice."
First minister Alex Salmond said renewable energy lies at the heart of Scotland's new economy. "The contribution we are offering has secured an economic boost for Glasgow and will deliver a development to strengthen the country's position as a global leader in low-carbon energy," he declared.