Serbia’s EPS and Srbijagas have agreed with Azerbaijan’s SOCAR to set up a joint venture for a planned 500 MW combined-cycle gas power plant in Niš. The project is at the preparation stage ahead of a final investment decision. The partners said the arrangement is intended to advance work required for that decision.
The joint venture will be split with EPS and Srbijagas each holding 50%, while SOCAR owns the remaining 50%. The agreement covers development financing, governance and responsibilities. Major preparatory decisions are subject to unanimous approval.
Feasibility work and planning documentation
A preliminary feasibility study has been completed, and the Niš spatial plan has been adopted. Contracts have been awarded for planning documentation and for a transmission connection study. A designer has also been selected.
Work on the full feasibility study and technical documentation is under way. The joint venture will coordinate remaining tasks needed to support an investment decision. Preparatory steps are being aligned with the commercial process for moving forward.
Development timeline and market role
The partners aim to complete the plant within approximately four years if development proceeds as planned. No capital cost or final financing package was disclosed. The next commercial test is whether the completed studies can support financing and an investment decision.
EPS expects the facility to add generation capacity and flexibility as wind and solar capacity expands. It said gas-fired output could also replace some coal and fuel-oil generation. Operating costs are expected to remain exposed to gas prices.
Ownership, responsibilities and decision-making
The venture defines ownership and development responsibilities among the partners. Governance arrangements require unanimous approval for major preparatory decisions. The structure is designed to determine whether the project can proceed based on study outcomes supporting financing.
