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 arrangement is intended to advance preparations ahead of a final investment decision. The partners’ agreement covers development financing, governance and responsibilities.
EPS and Srbijagas will each hold 50% of the venture, while SOCAR will own the remaining 50%. Major preparatory decisions under the agreement require unanimous approval. The joint venture is also set up to coordinate work needed to support the investment decision process.
Feasibility work and permitting steps for the Niš project
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 for the project.
Work on the full feasibility study and technical documentation is under way. The joint venture will coordinate remaining tasks required to support an investment decision. Preparatory milestones are linked to whether the completed studies can underpin financing arrangements.
Project timeline and commercial considerations
The partners aim to complete the plant within approximately four years if development proceeds as planned. No capital cost estimate or final financing package was disclosed as part of the agreement. The next commercial test is whether the completed studies support financing and an investment decision.
EPS expects the facility to add generation capacity and provide flexibility as wind and solar capacity expands. Gas-fired output could also replace some coal and fuel-oil generation. Operating costs for gas-fired production are expected to remain exposed to gas prices.
