Representatives of Serbia’s Ministry of Mining and Energy, Elektroprivreda Srbije (EPS), Srbijagas and the State Oil Company of Azerbaijan (SOCAR) have concluded negotiations in Istanbul on an agreement to establish a joint venture to develop and build a new gas-fired power plant in Nis, Report quotes the Serbian government as saying.

“The agreement between the three companies is expected to be signed in Belgrade within the next month,” the government said.

The new gas-fired power plant is expected to have a capacity of up to 500 MW and will generate both electricity and heat. Construction is scheduled to be completed within four years.

The government noted that this will be the first joint project between EPS, Srbijagas and SOCAR and an important step toward further strengthening energy cooperation between Serbia and Azerbaijan.

The construction of the power plant is expected to improve the reliability of energy supplies and create additional generating capacity amid rising electricity consumption in Serbia.

Azerbaijan and Serbia signed an agreement in February 2026 on the construction of a gas-fired power plant near the Serbian city of Nis, with a capacity of 350 MW of electricity and 150 MW of thermal energy. The document was signed during Azerbaijani President Ilham Aliyev’s visit to Serbia.

In early June, EPS and SOCAR signed key terms of cooperation in Baku for the development, construction and operation of the gas-fired power plant in Nis, defining the main principles for establishing the joint venture and the project’s key commercial parameters.