A month after Serbian President Aleksandar Vucic announced plans to build a 1 GW gas-fired power plant near Nis in collaboration with Azerbaijan, Minister of Finance Sinisa Mali has clarified that the plant’s actual capacity will be 500 MW.
This project is part of Serbia’s Energy Development Strategy, which extends until 2025 and includes a new strategy for the years up to 2040, with projections continuing through 2050. Initially, the strategy proposed a smaller 150 MW plant with a budget of 250 million euros, but earlier announcements suggested a much larger 1 GW facility, with an estimated investment of 1 billion euros.
Earlier this week, Minister Mali met with Azerbaijan’s Minister of Economy Mikayil Jabbarov, reaffirming that both countries are moving forward with plans for the 500 MW gas-fired power plant.
Energy experts believe that the construction of the Combined Heat and Power Plant (CHPP) in Nis would help stabilize electricity supply and increase production in southern Serbia. However, they also warn that while gas may be a practical solution in the short term, its long-term price trend is expected to rise. Furthermore, Serbia’s commitment to the Sofia Declaration, which aims for climate neutrality by 2050, poses a challenge, as relying on natural gas for extended periods is incompatible with this goal.
