The scheme includes the construction of a new dam and upper reservoir at Loch a’ Choire Ghlais (the upper reservoir).
Under the plan, a powerhouse complex will also be developed underground, together with a series of tunnels to provide access and convey water between the lower reservoir and the upper reservoir.
SSE Renewables managing director Jim Smith said hydroelectric schemes, which use impounded water to generate electricity, are an excellent means of energy storage.
If the project receives consent, a final investment decision is unlikely to be taken before 2014 at the earliest, and progress of this scheme will be dependent upon a satisfactory public policy and regulatory framework, including a change in transmission charging regime.