Serbia and Azerbaijan step up talks on Niš 500 MW gas power plant

Serbia is moving ahead with talks with Azerbaijan on a new gas-fired power plant project near Niš, a development that matters for investors because it ties future electricity supply to both long-term contracting and fuel availability. Energy Minister Dubravka Đedović held discussions in Belgrade with representatives of Azerbaijan’s SOCAR as negotiations intensify around the project’s technical and commercial framework.

Technical alignment and commercial terms

According to the minister, the two sides have made significant progress in a short period following an intergovernmental agreement signed earlier this year between Serbia and Azerbaijan. Recent discussions have focused on aligning technical specifications and commercial terms for the facility.

Alongside high-level political meetings, Azerbaijani experts have been carrying out detailed consultations with Serbian stakeholders, including EPS and Srbijagas. Authorities expect that key contractual provisions could be finalized by early May, enabling the next phase of development.

Ownership, financing and project governance

The future agreement is expected to spell out the roles of all partners, including ownership structure and financial contributions. A joint venture is planned to manage both construction and operation of the plant.

The project is positioned as a way to strengthen Serbia’s energy system and support more stable electricity supply, particularly for the country’s southern regions and industrial users. Preliminary plans point to an installed capacity of around 500 MW for electricity generation and about 150 MW of thermal output, though final figures will depend on the project’s financial structure and investment viability.

Timeline and expected fuel use

Commissioning is currently targeted for around 2030. The initiative also underscores expanding energy cooperation between Serbia and Azerbaijan: with gas imports from Azerbaijan increasing in recent years, the planned plant is expected to consume roughly 600 million cubic meters of gas annually once operational.

For market participants, the timetable—particularly the push to finalize contractual provisions by early May—will be closely watched as it determines how quickly Serbia can translate political commitments into binding commercial arrangements for capacity building in its southern power demand areas.