A gas-fired thermal power plant planned in the city of Niš will become the first major joint project of the State Oil Company of Azerbaijan Republic, SOCAR, in Serbia, with intensive work already underway.

Azerbaijan’s Deputy Energy Minister Orkhan Zeynalov said that the project marks a significant step in bilateral energy cooperation, The Caspian Post reports via the Serbian weekly NIN.

Zeynalov noted that the two countries plan to establish joint expert working groups, with one of the key issues being the development of gas pricing parameters for the planned gas-fired power plants. He added that SOCAR has a broad portfolio of energy assets and is also exploring additional business and investment opportunities in Serbia.

He emphasized that Azerbaijan and Serbia share closely aligned positions on the energy transition. “Moving toward cleaner energy sources is not an easy task for countries with strong traditions in conventional energy,” Zeynalov said. “We see opportunities to exchange knowledge, experience, and regulatory practices. In addition, we have concrete plans for hydrogen production, which opens up further prospects for future cooperation with Serbia.”