A TEN year, £2 billion investment will help make homes more energy efficient.
Alex Neil, Scottish Government Infrastructure Secretary, launched a consultation on energy efficiency at Wyndford Estate in Maryhill, where he visited Cube Housing's District Heating Scheme.
Mr Neil said by working with energy firms the cash would fund initiatives to reduce household bills and cut carbon emissions.
He said: "An estimated 658,000 households were in fuel poverty in Scotland in 2010.
"Working with energy firms, we plan to ensure investment of more than £2bn is provided over the next ten years to ensure our housing stock is energy efficient.
"New technologies, which would bring down carbon emissions as well as household fuel bills, are key to energy efficient homes and a vital element in economic recovery."
The scheme in Wyndford will replace individual boilers with a communal heat and power system supplying almost 2000 homes.
The combined heat and power unit, housed in a new energy centre at the edge of the estate, uses gas to produce electricity and hot water more efficiently.
Cube Chairman Gordon Scott, said: "This scheme will make a difference to the lives of hundreds of tenants living in Wyndford.
"The project will modernise and upgrade the heating system in all our tenanted homes. Properties will be warmer, more energy efficient and more comfortable.
"We are delighted to be working with Scottish and Southern Energy and Scottish Gas on delivering what we believe is one of the biggest projects of its kind in the UK.