Serbia has taken an important step toward the development of a new gas-fired power generation facility after state-owned utility EPS and Azerbaijan’s SOCAR formalized the framework for their cooperation on a planned power plant in Niš. The agreement establishes the basis for creating a joint venture that will oversee the project from its development phase through construction and eventual operation, while also defining the key commercial principles that will guide the partnership in the coming years.
The planned facility is expected to become one of Serbia’s significant new sources of baseload electricity generation. Government officials view the project as a key element in broader efforts to modernize the national energy system, enhance supply security, and diversify the generation mix as the country moves gradually toward lower-carbon technologies.
According to Serbian authorities, the target is to integrate up to 500 MW of new capacity into the national grid by the end of the decade. The project is expected to strengthen long-term energy security while also providing additional flexibility to support the ongoing transformation of the electricity sector.
The latest agreement also highlights the deepening energy cooperation between Serbia and Azerbaijan. In recent years, bilateral relations in the energy sector have expanded significantly, particularly in areas such as natural gas supply, infrastructure development, and strategic investments. Officials suggest that this partnership could open the door to additional joint projects beyond the Niš power plant.
For EPS, the initiative represents another step in reshaping its generation portfolio. The company is working to balance traditional production assets with newer technologies capable of delivering stable output while aligning with evolving energy and environmental priorities.
Representatives of both companies emphasized that the cooperation between EPS and SOCAR combines technical expertise, financial capacity, and industry experience, forming a foundation for the development of a modern power facility designed to support the long-term stability of Serbia’s electricity system.
The Niš gas-fired power plant is considered one of the flagship projects within the wider energy cooperation agreement signed between Serbia and Azerbaijan earlier this year. That intergovernmental arrangement, endorsed at the highest political level, laid the groundwork for deeper collaboration on major energy infrastructure projects.
