Serbia to sign gas power plant memorandum with Azerbaijan

Serbia intends to sign a memorandum soon with Azerbaijan on constructing a gas-fired power plant, Minister of Mining and Energy Dubravka Đedović Handanović revealed.

Dubravka Đedović Handanović spoke about a gas power plant project in Serbia with Deputy Minister of Economy of Azerbaijan Anar Akhundov and a high-level delegation of the State Oil Company of Azerbaijan – SOCAR.

She stressed that installing a gas power plant near the city of Niš, in the country’s southeast, is of strategic importance.

The proposed gas power plant near Niš is a priority project envisaged by the country’s strategic documents

The construction of a gas-fired facility is included in the new energy development strategy and the National Energy and Climate Plan (NECP) as a priority project, according to Đedović Handanović. It was also discussed, in her words, at the meetings of the presidents of Serbia and Azerbaijan, Aleksandar Vučić and Ilham Aliyev, respectively.

“This project is important for generating baseload energy and providing the security of supply; however, it also represents a step forward in the strategic partnership of two countries in the gas sector,” she noted.

She recalled that the partnership started in 2024 when the two countries signed a contract on the supply of natural gas.

The details will be defined by the energy companies of the two countries

Đedović Handanović added the next steps would be defined by Serbia’s ministry and energy companies from the two countries – Serbia’s utilities Elektroprivreda Srbije (EPS) and Srbijagas and SOCAR.

The meeting was also attended by Dušan Živković, EPS’s general manager, and Dušan Bajatović, the Srbijagas general manager.

In November 2024, President of Serbia Aleksandar Vučić said in Baku that the government was starting talks with Azerbaijan on a possible joint construction of a 1 GW gas power plant in Niš or two smaller units.

Of note, the country’s draft 2040 energy strategy includes a plan for a gas-fired cogeneration plant in Niš of 150 MW in electricity capacity and another 100 MW for heat. Another one would be built in Novi Sad. It is envisaged at 350 MW and 100 MW, respectively.