„Elektroprivreda Srbije“, „Srbijagas“ i SOCAR signed the Shareholders' Agreement on the development of the project for the construction of a combined cycle gas power plant in Niš, which includes the establishment of a Company. The agreement was signed on September 30 by the General Directors of EPS and Srbijagas, Dušan Živković and Dušan Bajatović, and Elčin Ibadov, Advisor to the President of SOCAR for Development and Portfolio and General Manager of SOCAR Turkey. The signing of the contract was attended by the Minister of Mining and Energy in a caretaker capacity, Dubravka Đedović Handanović, as well as the Ambassador of the Republic of Azerbaijan to the Republic of Serbia, Tahir Tagizade.
- Since the gas-fired power plant project in Niš is already at an advanced stage of preparation, the establishment of a joint company, which is the next step after today's signing, will enable even more efficient and stronger cooperation in the preparation of the construction of an energy plant, which is very important for the production of electricity, balancing the system and attracting investments in the south of Serbia.
Implementation of such large and complex energy projects requires strategic partnerships and the strategic partnership between Serbia and Azerbaijan was established by Presidents Aleksandar Vučić and Ilham Aliyev. Thanks to this cooperation, today we have a clear connection between three important systems - international energy partnership, gas supply and electricity production. This is a good basis for the development of a project of long-term importance for Serbia, primarily due to the growing consumption of electricity and the need for cleaner energy sources, and gas is compared to coal and fuel oil and represents a transitional energy source in the process of energy transition - said the Minister.
It was emphasized that in the coming period, the priority is to complete all the necessary technical, economic and study analyses, as the plan is for the gas power plant to be built in the next four years.
Dušan Živković, General Manager of the Electric Power Industry of Serbia, reminded that the Preliminary Feasibility Study has been completed, the Spatial Plan of the City of Niš has been adopted, the preparation of planning documentation and the Transmission System Connection Study has been contracted, a designer has been hired and the preparation of the Feasibility Study and technical documentation has begun.
"At a time of energy transition and increasing and intense global challenges, new energy, new megawatts, is imperative. „Elektroprivreda Srbije“ (EPS) is determined to ensure energy security and diversify sources, and to use gas as a transit energy source. We have been actively working on the project for months, with a clear goal to build a highly efficient gas-steam power plant with a capacity of 500 MW," said Živković.
The General Manager of Srbijagas, Dušan Bajatović, emphasized the importance of cooperation between Serbia and Azerbaijan in the construction of the gas power plant.
- After Russia, Azerbaijan is the largest supplier of natural gas to Serbia, and it is logical that we are building a strategic partnership with Azerbaijan in terms of the construction of a gas power plant. I am glad that we are making progress in the implementation of this project. A lot has already been done in practice, so I have no doubt that we will build a new gas power plant. It is needed primarily by EPS because of the balancing of the power system, which is very important for the future," said Bajatovic.
Advisor to the President of SOCAR for Portfolio Development and General Manager of SOCAR Turkey, Elchin Ibadov, pointed out the importance of this project for Azerbaijan.
"Today's signing is a very important step for Azerbaijan and builds on the Interstate Agreement and reflects the friendship that our two countries have developed through the Energy Partnership. This agreement allows SOCAR and EPS to jointly develop a combined gas and steam power plant in Niš. Together we will prepare a technical feasibility study with an expert team of engineers. When the preparatory works are completed, our goal is to come to a joint investment decision. We know that we will have to work hard and we will work together with our partners to reach that goal," said Ibadov.
In the joint venture of EPS, Srbijagas and SOCAR, 50 percent of the ownership will belong to Serbian companies, and 50 percent to Azerbaijani companies. The contract defines the rights and obligations of the companies, joint management and unanimity in making key decisions during the preparatory phase of the project, as well as the financing of development activities.
Prior to the signing of the contract, the first meeting of the Steering Committee of the project was held, where activities related to further development and implementation of the gas power plant project in Niš were discussed. The meeting was attended by the Minister of Mining and Energy in a caretaker capacity, General Managers of three companies with associates and the presidents of the City of Niš.
