Householders and businesses in Kosovo (pictured) will soon be able to implement energy efficiency measures and invest in renewable projects following a €5 million (£3.3m) loan provided by a London-based bank.

The loan to TEB, the fourth largest bank in the country, is believed to be the first under the new Kosovo Sustainable Energy Projects Framework (KoSEP) approved by the European Bank for Reconstruction and Development (EBRD). The scheme aims to increase public awareness of potential energy efficiency gains through the investments.

Renewable sources of energy only account 3% of total energy usage in Kosovo currently and the Government aims to more than double the share by 2015.

Henry E. Russell, EBRD Director – Western Balkans, Belarus, Moldova and Ukraine said: “The launch of the KoSEP framework marks our strategic priority to support the sustainable development of Kosovo’s energy sector on a wider scale as outlined in our country strategy. It is not a coincidence that we start our support to the sector from the energy efficiency angle.

“The framework will demonstrate the benefits of energy conservation and rational energy utilisation for business and households in times of increasing electricity prices. Lower energy costs will strengthen the competitiveness of local enterprises and reduce the burden on households.”