EPS, Srbijagas and SOCAR sign agreement – Gas-fired power plant near Nis by 2030

Elektroprivreda Srbije (EPS), Srbijagas and SOCAR have signed a shareholders’ agreement to develop a project for the construction of a combined-cycle gas-fired power plant in Nis, a move that entails the establishment of a joint venture. The agreement was signed by the CEOs of EPS and Srbijagas, Dusan Zivkovic and Dusan Bajatovic, alongside Elchin Ibadov, Advisor to the SOCAR President for Development and Portfolio and CEO of SOCAR Turkey.

The signing ceremony at the Government of the Republic of Serbia building was attended by Dubravka Djedovic Handanovic, Minister of Mining and Energy in a caretaker capacity, and Tahir Tagizade, Ambassador of the Republic of Azerbaijan to the Republic of Serbia.

– Given that the gas-fired power plant project in Nis is already in an advanced stage of preparation, the establishment of a joint venture, the next step following today’s signing, will enable even more efficient and robust cooperation in preparing for the construction of an energy facility that is crucial for electricity generation, system balancing, and attracting investment to southern Serbia. Realizing such large-scale and complex energy projects requires strategic partnerships, and the strategic partnership between Serbia and Azerbaijan was established by Presidents Aleksandar Vucic and Ilham Aliyev. Thanks to this cooperation, we now have a clear link between three vital systems - international energy partnership, gas supply, and electricity generation. This serves as a solid foundation for developing a project of long-term significance for Serbia, primarily due to rising electricity consumption and the need for cleaner energy sources. Natural gas fits this description compared to coal and fuel oil, serving as a transitional fuel in the energy transition process – the minister said.

It was emphasized that the priority for the upcoming period was to complete all necessary technical, economic, and analytical studies, as the plan was to construct the gas-fired power plant within the next four years.

Dusan Zivkovic, CEO of Elektroprivreda Srbije (EPS), noted that the preliminary feasibility study had been completed, that the Spatial Plan for the City of Nis had been adopted and that contracts had been signed for the preparation of planning documentation and the grid connection study. Furthermore, a designer has been engaged, and work has begun on the feasibility study and technical documentation.

– In an era of energy transition and increasingly intense global challenges, new energy and new megawatts are imperative. EPS is determined to ensure energy security, diversify sources, and utilize natural gas as a transitional fuel. We have been actively working on this project for months with the clear goal of building a highly efficient 500 MW combined-cycle gas power plant – Zivkovic said.

Dusan Bajatovic, CEO of Srbijagas, highlighted the importance of cooperation between Serbia and Azerbaijan in the construction of the gas-fired power plant.

– After Russia, Azerbaijan is Serbia’s largest natural gas supplier, and it is logical for us to build a strategic partnership with Azerbaijan regarding the construction of a gas-fired power plant as well. I am pleased with the progress we are making on this project. Much has already been accomplished in practice, so I have no doubt that we will build the new gas-fired power plant. It is needed primarily by EPS to balance the power system, which is crucial for the future – said Bajatovic.

Elchin Ibadov, Advisor to the SOCAR President for Development and Portfolio and CEO of SOCAR Turkey, highlighted the project’s significance for Azerbaijan.

– Today’s signing marks a very important step for Azerbaijan. It builds upon the interstate agreement and reflects the friendship our two countries have developed through our energy partnership. This agreement enables SOCAR and EPS to jointly develop a combined-cycle gas-steam power plant in Nis. We will prepare a technical feasibility study together with a team of expert engineers. Once preparatory work is complete, our goal is to reach a joint investment decision. We know hard work lies ahead, and we will work together with our partners to achieve that goal – said Ibadov.

In the joint venture formed by EPS, Srbijagas and SOCAR, ownership will be split equally. 50 percent will be held by the Serbian companies and 50 percent by the Azerbaijani company. The agreement defines the companies’ rights and obligations, joint management, the requirement for unanimity in making key decisions during the project’s preparatory phase, and the financing of development activities.

Prior to the signing of the agreement, the first meeting of the project Steering Committee was held to discuss activities related to the further development and implementation of the gas power plant project in Nis. Participants included the Minister of Mining and Energy in a caretaker capacity, the CEOs of the three companies and their associates, and representatives of the City of Nis leadership.

Elektroprivreda Srbije ad Beograd

JP Srbijagas Novi Sad

Ministarstvo rudarstva i energetike Republike Srbije

Ambasada Republike Azerbejdžan Beograd

Grad Niš

SOCAR

Embassy of the Republic of Azerbaijan in the Republic of Serbia

Tahir Tagizade

Dubravka Đedović Handanović

Dušan Živković

Dušan Bajatović

Elchin Ibadov

gas power plant Niš