Serbia discusses joint power plant project with Azerbaijan’s SOCAR

Serbian officials have discussed steps toward building a 500 MW gas-fired power plant near Niš in cooperation with Azerbaijan’s SOCAR, with preparations for the project now underway, Dubravka Đedović Handanović, Serbian Minister of Mining and Energy, has said.

Handanović noted that she held talks with representatives of Elektroprivreda Srbije (EPS), Srbijagas and the Niš city administration and remarked that at this stage, the most important task is to finalise the shareholder agreement between EPS, Srbijagas and SOCAR, Caliber.Az reports, citing local media.

“The document will enable the establishment of a joint venture, define the commercial parameters of the project and set out the responsibilities of the companies involved in its implementation," she added.

A steering committee, project management team and five technical working groups have been established, while coordination among the participants has begun. The preliminary feasibility study is currently being coordinated with SOCAR.

The meeting also covered the preparation of project documentation, attracting investment for related infrastructure and connecting the plant to the transmission grid.

The minister called the project strategically important for Serbia, noting that the facility will produce both electricity and heat and is expected to be completed by 2030.

"This will be the first joint project between EPS, the Government of Serbia and Azerbaijan's SOCAR. For Serbia, its implementation will mean strengthened energy security, reliable supply for consumers and additional opportunities for industrial development in the south of the country," she said.

Azerbaijan and Serbia signed an agreement in February 2026 to build the plant, providing for 350 MW of electricity generation and 150 MW of heat production. In June, EPS and SOCAR signed key cooperation terms in Baku covering the plant’s development, construction and operation, as well as the creation of a joint venture.

By Bakhtiyar Abbasov