Despite losing out on 500,000 funding, Angus Farquhar says he has won enough support through fundraising to make his "Speed of Light" project a reality.
"Working on the idea has been one of the most exciting creative periods I can remember," he said. "I can only describe the process as pushing at a set of open doors."
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Hide AdThe Glasgow artist plans to light up the attraction by recruiting thousands of volunteers.
Each would be fitted with equipment to create patterns in light around the extinct volcano, with different colours for the speed of participants, such as red bursts of light for sprinters.
The installation would be in place for the 2012 Festival as the Olympics climaxes. It is described as a "celebration of human potential through an unforgettable intermingling of sports and innovative cultural activity".