Businesses working in the energy sector are being invited to compete for a share a £2.75 million budget to install energy efficient technologies in some of the government's main departments at Whitehall.

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The Energy Efficient Whitehall competition is part of the Small Business Research Initiative, and aims to encourage government procurement from innovative companies.

Government offices taking part in the scheme include the Department for Business Innovation and Skills, the Department of Energy and Climate Change and the Foreign and Commonwealth Office.

Energy and climate change minister Joan Ruddock said the scheme was "an excellent way for central government departments to cut emissions as well as providing work for small businesses".

The Environment Agency, which plays a central role in delivering the environmental priorities of central government, recently announced it had installed voltage power optimisation (VPO) technology in 33 of its buildings, cutting its carbon emissions by around 12 per cent per year while also reducing energy bills by between £160,000 and £200,000.