GCC officers are investigating various models for the creation of a proposed Glasgow Energy Services Company (GLESCo).
The proposed company would be set up in partnership with the private sector and could see a range of alternative renewable projects around the city.
The energy company has the potential to become one of the largest in Europe. It is hoped the GGC's contacts and extensive background in similar energy schemes will help attract funding for new community based energy projects and also help assist in the city's future economic growth and skills development.
The energy generated would be used to power street lights and council buildings. Energy could also be sold to the National Grid and the cash raised used to aid fuel poverty in Glasgow.
Councillor Gordon Matheson, Leader of Glasgow City Council and Chair of Sustainable Glasgow, said: "Such a project and potential company could provide social, economic and environmental benefits for the city.
"Last year, the council's energy bill was almost £26million. This scheme could generate significant savings which could be used to help vulnerable city residents struggling to pay their fuel bills.
"Setting up a company could also help protect the council against future energy price rises and jobs would be created as new renewables projects were installed. Glasgow's carbon footprint would also be reduced as more people move to greener energy production through new community projects."