The Strategic Policy & Resources Committee will discuss proposals for the River Tay Heat Pump and District Heating project on Wednesday, 20 April.
The scheme will use water heat exchange pumps to capture renewable energy from the River Tay.
A District Heating Network will also be created to supply affordable heat to four serviced sites and manufacturing units at Perth Food & Drink Park, 211 rented houses, North Muirton Primary School and other possible public buildings.
The Scottish Government-funded Local Energy Challenge Fund will provide £2 million towards the costs of the heat pipe network, which is set to become one of the largest demonstrator projects of its type in the UK.
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The scheme aims to attract businesses to the Perth Food & Drink Park, which will not only benefit from the River Tay Heat Pump and District Heating project, but also a new solar farm.
A total of 300 panels at 75KW have been installed on land at the Food & Drink Park site, which will produce electricity through a private network.
Both projects are part of the council's Tay EcoValley project to grow the economy in a resource-efficient and sustainable way.
Cllr Alan Grant said: "The River Tay Heat Pump and District Heating Project allows us to tap into the immense power of the river in a way which will not harm wildlife, but will provide a source of renewable energy and access to cheaper heating to reduce fuel poverty in the north of Perth and help attract more food & drink related businesses to Perth on the basis of lower energy costs.
"The project will also be used as a model for the roll-out of similar schemes across the region, and potentially across Scotland. Together with the solar farm at Perth Food & Drink Park, this project demonstrates the exciting potential of Perth City as we continue to innovate for the future, and in doing so create higher-value, higher-skilled jobs."
(LM/MH)
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