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

“The agreement between the three companies is expected to be signed in Belgrade within the next month,” the government said, The Caspian Post reports, citing local media.

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

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

The plant is expected to enhance the reliability of energy supplies and provide additional generation capacity amid growing 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 Nis gas-fired power plant. The document set out the main principles for establishing the joint venture and the project’s key commercial parameters.