The gas-fired power plant that Azerbaijan plans to build in the Serbian city of Nis could become an important element of the country’s evolving energy system, with the €600 million project designed to generate 350 megawatts of electricity alongside 150 megawatts of heat from a total capacity of 500 megawatts. Beyond adding new generation capacity, the plant is significant because it would strengthen the reliability and flexibility of Serbia’s wider energy network at a time when the country is seeking to diversify its energy sources and reduce vulnerabilities in its electricity supply. The project also gives Azerbaijan and SOCAR a role that extends well beyond simply supplying natural gas to the Serbian market.
By participating directly in electricity generation, SOCAR would move further downstream into Serbia’s energy sector, creating a model in which Azerbaijani gas is not only exported as a commodity but is also used to generate electricity and heat within the country. That gives Baku a broader commercial stake in Serbia’s energy infrastructure while deepening the strategic dimension of the two countries’ growing energy relationship. The governments of Azerbaijan and Serbia signed an agreement on the project in February, while SOCAR and Serbia’s state-owned electricity company EPS have since reached an agreement on the key principles governing the plant’s construction, development and operation.
The final agreement is now being prepared, marking another step toward turning the project from a bilateral energy commitment into a long-term infrastructure investment that could expand Azerbaijan’s role in Serbia’s energy market. As we know, SOCAR was known for many years only for the extraction and sale of oil and gas. Now this company cannot be called an ordinary oil company.
SOCAR is now operating in all segments of oil and gas that can create added value. This enterprise, which will be built in the city of Niš, will add a new level to SOCAR's activities - electricity production. Regarding the capacity of the enterprise, we should note that if it operates at full capacity, it will produce 350 megawatts of electricity, which means 3.1 terawatt-hours of electricity per year.
Considering that Serbia's annual electricity consumption is about 30 terawatt-hours, we can say that the power plant in the city of Niš will meet about 10 percent of the country's needs. As we mentioned earlier, this plant will also produce 150 megawatts of heat in addition to electricity. In more detail, the water used to produce electricity will not be wasted and will be used by homes and other enterprises.
According to calculations, 150 megawatts of heat is equivalent to approximately 1.3 terawatt-hours of thermal energy, which will be able to benefit thousands of homes or enterprises. All this will significantly increase Azerbaijan's position in both Serbia and Europe, indirectly through SOCAR. As we have already mentioned, SOCAR will no longer be just a Serbian gas exporting company, but will convert the gas it transports to Europe into electricity and heat, creating added value.
Extract — continue reading at the source.
