Serbia, Azerbaijan to sign contract for constructing Serbian GTPP in April
BAKU. April 2 (Interfax) - Serbia and Azerbaijan will sign a contract in April for the construction and operation of a combined-cycle gas thermal power plant (GTPP) in Nis, Serbia, the publication Energy Serbia News reported.
"The Serbian government has approved a bill on the ratification of an [intergovernmental] agreement with Azerbaijan on constructing and operating a combined-cycle gas power plant in Nis. The project timeline provides for the signing of the construction contract in Azerbaijan in April, with completion of the plant's construction scheduled for 2029," the publication said.
The agreement, signed in Belgrade on February 15, 2026, establishes a framework arrangement for two years with the possibility of automatic extension, it said. "This document aims to strengthen bilateral energy relations, while ensuring long-term natural gas supplies from Azerbaijan and opening part of the Serbian energy market to SOCAR [the State Oil Company of the Azerbaijani Republic]," it said.
Under the agreement, the governments of the two countries jointly finance the initial development phase. This includes the preparation of key project documentation (a spatial plan, a feasibility study, and an environmental impact assessment) and construction design.
"After these stages are completed, a specialized project company will be established to oversee the plant's operation and management. A key element of the partnership is ensuring stable supplies of Azerbaijani gas, which is expected to form the basis for reliable electricity generation at the future facility," it said.
According to the Serbian authorities, the GTPP project will not require additional financing from the state budget.
It is planned that the plant will be located north of the village of Kruska, near the city of Nis, but its exact location will be determined within a detailed urban plan.
It was previously reported that Baku and Belgrade had signed an intergovernmental agreement on February 15, 2026, on constructing a GTPP with a capacity of 500 MW in Serbia. The project will be implemented on a parity basis and will be carried out together with SOCAR by Serbia's Elektroprivreda Srbije (EPS) and Srbijagas.
Currently, the parties are cooperating in the field of gas supplies. To this end, SOCAR and Srbijagas signed an agreement on November 15, 2023, on the supply of Azerbaijani gas in the amount of up to 400 million cubic meters in 2024-2026, with the possibility of an increase from 2027.
