Serbia and SOCAR to develop 500 MW gas-fired power plant

Serbia and Azerbaijan’s SOCAR have concluded negotiations to establish a joint venture for the development and construction of a new gas-fired combined heat and power (CHP) plant near Niš. The facility is expected to have a capacity of up to 500 MW.

The shareholder agreement involves Serbia’s Ministry of Mining and Energy, the state power utility Elektroprivreda Srbije (EPS), Srbijagas, and SOCAR. Formal signatures on the agreement are anticipated in Belgrade within the next month. The project, estimated to cost approximately €600 million, aims to provide dispatchable electricity and heat, offering essential grid flexibility to balance the increasing integration of renewable energy sources like wind and solar.

Construction and development are projected to take roughly four years once the project enters the implementation phase. This partnership marks an expansion of energy cooperation between Serbia and Azerbaijan, moving beyond gas supply into large-scale electricity generation.