Serbia, Azerbaijan sign agreement to build gas-fired power plant

Serbia and Azerbaijan have signed an agreement on the construction of a combined cycle gas-fired power plant near the Serbian city of Niš. The plant is expected to have an installed capacity of around 500 MW, with the investment estimated at EUR 600 million.

The agreement between the Government of Serbia and the Government of Azerbaijan on the development, design, construction, and operation of a combined cycle gas-fired power plant in Serbia was signed by Serbian Minister of Mining and Energy Dubravka Đedović Handanović and Azerbaijan’s Minister of Economy, Mikail Jabbarov.

The signing ceremony took place during a visit by the Azerbaijani delegation, led by President Ilham Aliyev.

“The new production capacity will provide Serbia with additional baseload power and greater energy security, particularly in light of the expected increase in consumption, the construction of data centers, and the needs of industry in the south of the country,” said Đedović Handanović.

According to her, the planned capacity of the gas-fired plant near Niš is 350 MW for electricity and 150 MW for heat, with natural gas for production supplied by Azerbaijan.

Serbian President Aleksandar Vučić said following talks with Aliyev that the construction is expected to take a little over two years.

The plant’s construction is expected take a little over two years

Before the signing, Vučić said that the document was a term sheet agreement and that the Serbian side would aim to make all necessary preparations within the next two to three months so that the conceptual design could begin shortly afterwards.

In September 2025, Serbian parliament speaker Ana Brnabić said that negotiations with Azerbaijan on the construction of a natural gas-fired power plant near Niš had been completed and that the investment was estimated at EUR 600 million.

Over the weekend, Serbia and Azerbaijan exchanged six more signed documents on cooperation in various fields, including media and communications, the economy, food safety, and health insurance. Earlier, the two sides held the inaugural session of their strategic partnership council.