A new monster could soon be inhabiting the murky depths of Loch Ness.

Scotland's largest hydro electric power station is being planned for the world-famous destination, with the bulk of the development being hidden underground.

Power giant Scottish and Southern Energy is investigating the construction of a massive pumped storage scheme at Balmacaan, between Drumnadrochit and Invermoriston.

It would be six times larger that the company's £140million flagship Glendoe plant at nearby Fort August, which was opened earlier this year by the Queen.

News of the scheme was welcomed by Loch Ness businessman Willie Cameron, who runs a tourism business at Drumnadrocht.

He said: "We have plenty of water here. From that point of view it is a renewable energy resource which is going to reduce the carbon footprint in the Highlands.

"Provided everything is hidden and underground, I would not have any objections."

Graham Amrose, executive director of Destination Loch Ness, said the visual impact of the proposed development would have to be carefully considered.

The new project would involve housing the enormous turbines in a large underground tavern off the A82.

The only visible elements of the ambitious multi-million pound project would be a specially-designed dam and reservoir.

It would involve building a new reservoir at the existing natural loch nam Breac Dearga, three kilometres to the north-east of Invermoriston.

Water would be pumped up from Loch to the higher loch and then released to drive the underground turbines to generate produce the electricity.

It would be expected to produce up to 600megawatts of electricity.

Currently, the largest pump station is at Cruachan in Argyll, generating 440MW. The Glendoe plant produces just 100MW.

An SSE spokeswoman said the location was a prime site for hydro electric generation, with steep-sided hills about the loch.

She added: "It would be a major investment for SSE. It will be a large engineering work and, as with the Glendoe scheme, during construction there will be opportunities for local contractors for work. It has got positive benefits for the local communities."

Views on the project are being sought from Highland Council, Scottish Natural Heritage and Historic Scotland. A series of exhibitions would be held prior to plans being submitted to the Scottish Government by 2011.

If given the go-ahead it would take up to three years to build.