Serbia’s EPS and Srbijagas have agreed with Azerbaijan’s SOCAR to establish a joint venture for a planned 500 MW combined-cycle gas power plant in Niš, advancing preparations ahead of a final investment decision.
EPS and Srbijagas will jointly hold 50%, with SOCAR owning the remaining 50%. Their agreement sets out development financing, governance and responsibilities, with major preparatory decisions requiring unanimous approval.
A preliminary feasibility study has been completed and the Niš spatial plan adopted. Contracts have been awarded for planning documentation and a transmission connection study, while a designer has been selected.
Preparation of the full feasibility study and technical documentation is under way. The joint venture will coordinate the remaining work needed to support an investment decision.
The partners aim to complete the plant within approximately four years, if development proceeds as planned. No capital cost or final financing package was disclosed.
EPS expects the facility to provide additional generation and flexibility as wind and solar capacity expands. Gas-fired output could also replace some coal and fuel-oil generation, although its operating costs will remain exposed to gas prices.
The venture establishes ownership and development responsibilities. The next commercial test is whether the completed studies support financing and an investment decision.
