The Serbian Government has approved legislation to ratify an agreement with Azerbaijan for the construction and operation of a combined cycle gas-fired power plant (CHPP) in Niš, marking a new phase in energy cooperation between the two countries.
The agreement, signed in Belgrade on 15 February 2026, establishes a framework lasting two years, with the possibility of automatic renewal. It is intended to strengthen bilateral energy relations while securing long-term natural gas supplies from Azerbaijan and opening parts of the Serbian electricity market to SOCAR.
Under the deal, both governments will jointly finance the initial development phase. This includes the preparation of key project documentation such as a spatial plan, feasibility study, environmental impact assessment, and construction design. After these steps are completed, a dedicated project company will be established to oversee the development, operation, and management of the plant.
A key element of the partnership is ensuring a stable supply of Azerbaijani gas, which is expected to serve as the foundation for reliable electricity generation at the future facility.
Serbian authorities have emphasized that the project will not require additional funding from the state budget. According to planning documents, the plant is expected to be located north of the village of Krušca near Niš, although the exact location will be determined through a detailed urban development plan.
The project timeline envisions signing a construction contract in Azerbaijan in April, with completion of the plant targeted for 2029.
