Thousands of householders and local businesses in Azerbaijan can install energy-saving measures, thanks to a $5 million (£3m) grant provided by a London-based bank.

Demirbank will use the cash to help people install energy efficient and renewable technologies such as insulation, double-glazed windows, solar water heaters and rooftop solar panels.

The loan is part of the European Bank for Reconstruction and Development’s (EBRD) Caucasus Energy Efficiency Programme (CEEP).

Neil McKain, the EBRD’s Head of Office in Baku said: “Due to its large oil and natural gas resources and subsidised energy tariffs, Azerbaijan has a very low penetration rate of energy efficient technologies in its production facilities and residential sector.

“This means there is a wide range of energy efficiency opportunities in which the local financial sector and the EBRD have a crucial role to play.”