Shareholder agreement talks in Belgrade
Representatives of Serbia’s Ministry of Mining and Energy, state power utility EPS, gas company Srbijagas and Azerbaijan’s SOCAR have completed negotiations on a shareholder agreement. The deal is expected to be signed in Belgrade within the next month. The parties are setting up a new company to oversee the project.
Common structure for financing, development and build
The new company would place EPS, Srbijagas and SOCAR into a common structure for financing, developing and building the facility. The arrangement would mark the first joint investment involving all three companies. The project is described as a gas-fired combined heat and power plant.
Up to 500 MW CHP capacity and grid balancing role
The plant would generate electricity and usable heat from natural gas. Planned capacity is up to 500 MW. Authorities say the facility would provide dispatchable generation for Serbia’s system and could support balancing when wind and solar output is weak.
Timeline for development and construction
Development and construction are expected to take around four years once the project moves into implementation. The investment would expand the energy relationship between Serbia and Azerbaijan beyond gas supply and related infrastructure. It would shift cooperation toward large-scale electricity generation.
Thermal flexibility amid rising renewables
For Serbia, the project would add flexible thermal capacity as renewable penetration increases demand for balancing resources. Long-term economics are expected to remain exposed to natural-gas prices, carbon costs and the pace of electricity-market decarbonisation.
