December 2, 2025
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Serbia plans to stop using coal, fuel oil in district heating by 2040

By 2040, Serbia intends to replace fuel oil and coal in district heating plants with solar, wood biomass, heat pumps, municipal waste and geothermal energy.

Maja Vukadinović, acting Assistant Minister of Mining and Energy for Energy Efficiency and Climate Change, has said that the goal for the district heating sector is to phase out fuel oil and coal by 2040.

She explained that the idea is to replace fossil fuels with solar energy, wood biomass, heat pumps, municipal waste and geothermal energy.

“The list of programs and projects until 2028 is defined in the draft Program for the Implementation of the Energy Development Strategy of the Republic of Serbia until 2040 with projections to 2050, for the period from 2026 to 2028,” Vukadinović told Balkan Green Energy News.

The share of renewables should increase from 2.4% to 5.5%

According to the draft, implementation of decarbonization projects in district heating systems by 2028 should lift the share of renewable energy sources in heat production from 2.4% to 5.5%.

The fuel mix in 2023 was 75% natural gas, 8% petroleum products, 2% coal, 2% wood biomass, and 13% purchased heat. The structure of purchased heat production is 46.8% natural gas, 48.8% coal, 3.3% wood biomass, and 1.1% fuel oil.

serbia decarbonization district heating mix 2040

Natural gas will remain the dominant source of thermal energy, as it is today, although its share is expected to decrease from 73% to 50% by 2040, according to Vukadinović.

The decarbonization of the district heating system would reduce air pollution in cities, especially where coal or fuel oil is currently used, the ministry added.

A strategic plan for the district heating decarbonization policy is being prepared

“It’s very important that the fuels conversion is carried out in parallel with energy renovation of buildings and a reduction of the energy consumption for heating. It would significantly improve living conditions,” Vukadinović underlined.

Decarbonization would also have to lead to the improvement of the overall operation of the heating plants, as well as a reduction in network losses, the modernization of substations, and the introduction of daily and seasonal thermal energy storage, in her opinion. The operation of the district heating systems should depend less on the price volatility of imported fuels, Vukadinović stressed.

Serbia is preparing a strategic plan for the district heating decarbonization policy. The document is under development in cooperation with the European Bank for Reconstruction and Development (EBRD) and the business association of Serbian heating plants, Toplane Srbije.

The document, she explained, will outline steps to improve the district heating system, including the rollout of thermal energy storage, heat pumps, and heat production from waste, as well as the development of the country’s first district cooling systems.

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November 8, 2025
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Russia’s Lukoil to sell refineries, fuel chains in Southeast Europe amid US sanctions

Russian oil producer Lukoil said it intends to sell its international assets due to US sanctions and that it has already begun reviewing bids. The company’s foreign subsidiaries include oil refineries in Bulgaria and Romania, as well as fuel retail chains across Southeast Europe.

The sale of Lukoil’s international assets is being carried out under a wind-down license from the United States Office of Foreign Assets Control (OFAC). In a press release, the company said it might apply for an extension of the license, if necessary to ensure uninterrupted operations of its subsidiaries.​

The facilities up for sale include the largest oil refinery in the Balkans – Lukoil Neftohim Burgas in Bulgaria, as well as the Petrotel-Lukoil refinery in Romania. Lukoil also has fuel retail networks in Romania, Bulgaria, Turkey, North Macedonia, Croatia, Serbia, and Montenegro.

Lukoil operates the largest oil refinery in the Balkans and fuel retail chains across the region

Lukoil Neftohim Burgas is a major player in Bulgaria, supplying almost the entire market, according to reports. Its capacity is 190,000 barrels per day. On the other hand, the capacity of Petrotel-Lukoil in Romania is much smaller, at about 2.4 million tons per year.

The Bulgarian parliament has adopted legislative amendments requiring any sale of Lukoil’s assets in Bulgaria to be cleared by the country’s government and intelligence service.

Serbia-based oil company NIS is also under US sanctions, while the EU is imposing a ban on Russian gas

The US sanctions against Russian energy companies, which took effect earlier this month, are also affecting NIS, a Serbia-based oil refiner and fuel retailer owned by Russia’s Gazprom.

At the same time, the European Union plans to ban imports of Russian natural gas starting on January 1, 2026. However, a European Commission spokesperson said that it would not apply to the transit of Russian gas and would not affect deliveries to Serbia and Bosnia and Herzegovina.

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November 8, 2025
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Oil trader Gunvor set to take over Lukoil’s refineries, fuel chains in Southeast Europe

Russian oil producer Lukoil has accepted an offer from global commodities trader Gunvor Group Ltd. to acquire its international assets, which were put up for sale due to sanctions imposed by the United States over the war in Ukraine. The assets include oil refineries in Bulgaria and Romania, as well as fuel retail chains across Southeast Europe.

Lukoil has decided not to negotiate with other potential buyers. It will sell 100% of Lukoil International GmbH, which owns its assets outside of Russia, to Gunvor under key terms agreed earlier, according to an announcement from the Russian company. The value of the transaction was not disclosed.

Lukoil will not negotiate with other potential buyers

To conclude a binding agreement, the buyer needs to obtain permission from the US Office of Foreign Assets Control (OFAC), along with other approvals in relevant jurisdictions, Lukoil said.

If necessary, the two companies will apply for an extension of the existing OFAC license to ensure uninterrupted operations of Lukoil’s international assets and their banking servicing until the completion of the transaction, it added.

Gunvor is owned by Swedish billionaire Torbjörn Törnqvist

According to its website, Gunvor is one of the world’s largest independent commodities trading houses by turnover and a leading global oil trader. The company is majority‑owned by Swedish billionaire Torbjörn Törnqvist.

Lukoil’s facilities up for sale include the largest oil refinery in the Balkans – Lukoil Neftohim Burgas in Bulgaria, as well as the Petrotel-Lukoil refinery in Romania. The Russian company also has fuel retail networks in Romania, Bulgaria, Turkey, North Macedonia, Croatia, Serbia, and Montenegro.

The US sanctions targeting Russian energy companies took effect earlier this month.

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November 4, 2025
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North Macedonia’s ESM needs investments of EUR 3 billion to replace coal power

Power utility Elektrani na Severna Makedonija estimated that it requires EUR 3 billion by 2040 to replace electricity from its lignite-fired power plants. According to member of the Board of Directors Ivan Stojanovski, the state-owned company is preparing investments in gas power plants, solar, wind, hydropower and energy storage. He highlighted its plans for a 300 MWh battery and the Bogdanci hybrid energy park.

North Macedonia’s utility Elektrani na Severna Makedonija (ESM), the country’s main electricity producer, generated 60% of the 2024 output in the Bitola and Oslomej coal plants.

A rough estimate is that ESM would have to invest around EUR 3 billion in the next 15 years to replace its power production from lignite, which is baseload energy, Ivan Stojanovski, a member of the Board of Directors and the company’s Chief Financial Officer, told Balkan Green Energy News on the sidelines of the International Forum on Energy for Sustainable Development (IFESD-14).

He explained that the transition to green energy is quite expensive. ESM needs to replace the 840 MW in baseload production that the Bitola and Oslomej thermal power plants provide, the executive added.

Hydropower is a domestic electricity source, unlike natural gas

The company opted for investments in diverse energy sources to achieve it, Stojanovski stressed.

Gas power plants provide baseload energy, but at the same time, they turn the spotlight on national security as well as the security of supply, in his words.

Lignite is currently mined in North Macedonia while natural gas must be imported, so gas supply interruption is possible, ESM’s CFO added.

Gas power plants are required, but it is necessary to invest in hydropower as it is a domestic resource, Stojanovski said. On the other hand, hydroelectric plants are more expensive and it takes longer to build them, he noted.

ESM launched the Bitola 3 solar power project

ESM is developing wind and solar power projects as well. Stojanovski highlighted the planned expansion of its Bogdanci wind farm. The European Bank for Reconstruction and Development (EBRD) is participating in the development of the Miravci wind power project, of at least 100 MW, he recalled.

The company is working on solar power projects Oslomej 1 (10 MW), Oslomej 2 (10 MW), Bitola 1 (20 MW) and Bitola 2 (60 MW), Stojanovski asserted. Bitola 3 endeavor is underway, too, and the financing contract is expected to be signed by the end of the year, he revealed.

The photovoltaic system will have at least 100 MW, Stojanovski asserted.

“We plan to sign a contract next year with Agence Française de Développement (AFD) for a solar power plant in Bogdanci of at least 30 MW and to create a hybrid energy park there – wind, solar, and a battery,” he stated.

According to Stojanovski, the company is developing a battery energy storage project with the EBRD, for up to 300 MWh in capacity. The site is within the REK Bitola coal complex and the facility will be a systemic solution for all the solar power plants there, he explained.

Blended financing as a solution

“EUR 1 billion to EUR 1.3 billion is needed just for solar, wind and batteries. We will need between EUR 500 million and EUR 700 million for gas power plants. Another EUR 1 billion to EUR 1.3 billion would be for large hydropower plants such as Čebren and Vardar Valley, and some smaller projects,” Stojanovski explained.

Asked how the company plans to secure financing, he pointed to blended financing – own sources combined with some participation from international financial institutions. It is important to diversify the sources by opening cooperation with as many financial institutions as possible, in Stojanovski’s view.

ESM traditionally cooperates with the EBRD and KfW. Stojanovski announced that the company would diversify financing by launching cooperation with the World Bank, Italy’s development bank Cassa Depositi e Prestiti, and AFD.

“It will enable us to access more sources and complement them with financing from local banks. We also tend to obtain support from the state budget over a longer period, 10-15 years, and state guarantees, but also additional funds. This is a financial model that can secure long-term and sustainable financing of infrastructure projects,” Stojanovski said.

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October 30, 2025
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Several EU member states face uncertainty amid looming Russian gas ban

The European Union’s proposed measures to phase out imports of Russian oil and gas would destroy Hungary’s security of supply, according to Minister of Foreign Affairs and Trade Péter Szijjártó, who spoke at the meeting of energy ministers in Luxembourg. Slovakia is in a similar situation, while Romania pointed to the difficulty of proving the origin of foreign gas.

The draft regulation that the Council of the EU adopted doesn’t explicitly call for a ban on the transit of gas to third countries, while it foresees a temporary suspension for member states in case of supply disruption. The proposal also allows the possibility of importing non-Russian gas through the TurkStream pipeline.

The meeting of the so-called Energy Council highlighted several issues and concerns among EU member states about the proposed ban on Russian natural gas, including liquefied natural gas (LNG). Energy ministers in the Council of the EU adopted their position ahead of negotiations with the European Parliament on measures that they plan to introduce on January 1.

There would be a transition period for existing contracts for Russian fossil gas. Short-term ones concluded before June 17 this year would remain in force until June 17, 2026. Long-term contracts may run until January 1, 2028. It is also the targeted date for ending imports of Russian oil.

Szijjártó: The remaining infrastructure, physically and capacity-wise, is not able to supply Hungary

“The real impact of this regulation is that our safe supply of energy in Hungary is gonna be killed,” the country’s Minister of Foreign Affairs and Trade Péter Szijjártó stressed at the meeting.

He clarified that he wasn’t speaking about prices, and warned of damage from the proposed regulation – in the name of diversification.

“As now we are phasing out supply routes towards Hungary, the remaining infrastructure, physically and capacity-wise, is not able to supply the country. This has nothing to do with politics. This has nothing to do with Russia. This has nothing to do with the war in Ukraine. This is mathematics and physics,” Szijjártó stressed.

He also reiterated that his country would be left dependent on one oil supply route, via Croatia. It would leave Hungary “totally defenseless to a monopoly” as the transit fee doubled since the start of the war and it is five times higher than the current European benchmark, the minister underscored.

Bulgaria asks for protection from arbitration for gas TSOs

Slovak Deputy Prime Minister and Minister of Economy Denisa Saková said the supply of gas to her country is limited. There are interconnections with all neighbors, but external capacity bottlenecks remain, she argued. Bulgaria asked for provisions protecting gas transmission system operators (TSOs) from arbitration and financial penalties.

Romania voted for the draft regulation, but warned that identifying the origin of imported gas would be difficult

Secretary of State in Romania’s Ministry of Energy Cristian Bușoi urged for a workable and harmonized verification system and for the development of clear guidelines.

“This is not a matter of energy policy, but of strategic autonomy and European solidarity. At the same time, as we move from political vision to implementation, we believe it is important that the new authorization and verification system remains practical, transparent and proportionate. The additional requirements to demonstrate the exact country of production represent a new level of responsibility that, while understandable, and we support this in principle, may be difficult to fulfill in practice, particularly for pipeline [and] natural gas traded on hubs, and shipments transport, including LNG cargos that involve multiple sources and blending,” Bușoi told the ministers.

Council of EU proposes suspension clause

Notably, the Energy Council’s position, part of the REPowerEU plan and sanctions against Russia, is that the regulation should contain a suspension clause. The European Commission could temporarily lift the ban on Russian gas and LNG in case of significant disruptions of supply.

Another important element is the possibility of importing non-Russian gas through the TurkStream pipeline if the fuel’s origin is proven.

Gas transit through EU not subject to prohibition

Energy ministers said the EU should ensure that natural gas which crosses the 27-member bloc under a transit procedure is not ultimately entering into free circulation in the union.

It would imply that Serbia, Bosnia and Herzegovina and North Macedonia, non-EU countries, could continue to buy Russian gas that is delivered through Balkan Stream. It is the extension of TurkStream running through Bulgaria and Serbia to Hungary.

“Any gas which, before its import into the EU, was exported from the Russian Federation, either via direct export from Russia to the EU or via indirect export through a third country, should, except in case of transit, be subject to the prohibition”, the document reads.

Serbia still hasn’t signed a long-term gas supply contract with the Russian side, and the previous one expired in May. Moreover, the United States have imposed sanctions on Gazprom-controlled NIS, Serbia’s national oil importer, refiner and operator of a chain of service stations.

On top of it all, hydropower output is at a record low due to chronic drought, while coal is being imported as domestic mines don’t produce enough lignite.

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October 30, 2025
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Von der Leyen: EU is guarantee that Serbian families will be warm in winter

The European Union is connecting Serbia to its energy market, and it is the true guarantee that Serbian families will be safe and warm in winter, European Commission President Ursula von der Leyen said in Belgrade. She expressed preparedness to invest further in the country’s gas interconnector with Bulgaria.

In her speech during the visit to Serbia, European Commission President Ursula von der Leyen didn’t address the looming energy crisis caused by the sanctions that the United States imposed on Russian-owned oil company NIS. Moreover, she demanded greater alignment with the EU foreign policy from President of Serbia Aleksandar Vučić, including on sanctions against Russia.

“The EU membership offer is an opportunity. It is the promise of peace. Of prosperity. And of solidarity. Especially in times of crisis. You have seen this in practice,” she stated and pointed to the energy crisis of 2022.

EU showed equal solidarity with Western Balkans

After Russia invaded Ukraine, the EU introduced the same measures of solidarity to its Western Balkan partners as to its own member states, Von der Leyen stressed. “This is what it means to be a reliable partner. You can continue to count on us. We are connecting Serbia to the EU’s energy market. This is the true guarantee that Serbian families will be safe and warm in winter,” she stated.

The head of the 27-member bloc’s executive body pointed to ongoing investments like the Trans-Balkan Electricity Corridor. The mostly completed route stretches from Romania to Bosnia and Herzegovina and Montenegro and its MONITA undersea link with Italy.

Von der Leyen: Collective market power to secure better energy prices

Von der Leyen highlighted the Serbia-Bulgaria gas interconnector as well. The pipeline was completed almost two years ago. “We are prepared to invest further in it. We also invited Serbia to join the EU’s joint gas procurement mechanism. Together we are using our collective market power to secure better energy prices,” she said.

The administration in Brussels introduced the AggregateEU platform for joint procurement of gas in 2023. It expired earlier this year, but the EU is preparing another mechanism.

Serbia is planning an oil interconnector with Hungary and gas links with Romania and North Macedonia. Vučić said the upcoming winter would not be an easy one for Serbia.

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October 30, 2025
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European Commission: Russian gas ban doesn’t include transit to Serbia, BiH

The proposed ban on importing Russian natural gas to the European Union doesn’t apply to the transit of Russian gas, so it doesn’t affect the supply of Serbia and Bosnia and Herzegovina, the European Commission’s spokesperson Anna-Kaisa Itkonen told Balkan Green Energy News.

After the Council of the European Union on Monday adopted its negotiating position on the European Commission’s draft regulation to phase out imports of Russian natural gas by January 1, 2028, reports emerged that Bulgaria would halt the transit of Russian gas to Serbia from January 1, 2026. The council agreed with the initiative to prohibit imports of Russian gas, starting on January 1, 2026, while maintaining a transition period for existing contracts.

Notably, Bulgaria’s Prime Minister Rosen Zhelyazkov announced in late September that his country would suspend Russian gas transit for short-term contracts in 2026 as part of EU plans to cut off Russian gas imports completely, Reuters reported.

Serbia receives natural gas from Russia via the Balkan Stream. The pipeline is an extension of TurkStream that passes through Bulgaria and Serbia. TurkStream delivers gas from Russia across the Black Sea to Turkey.

Bosnia and Herzegovina and Hungary, Serbia’s neighbors, are also supplied via Balkan Stream.

With regards to transit via EU territory, the EU proposal only requires more transparency on transited volumes to third countries

Balkan Green Energy News asked the European Commission to clarify if the supply of Russian gas to Serbia and BiH via Bulgaria would be halted as of January 1, 2026, but also how the EU could assist Serbia and BiH in that case.

The European Commission’s spokesperson Anna-Kaisa Itkonen noted that its REPowerEU proposal foresees a prohibition of the import of Russian gas into the EU.

“The EU import prohibition doesn’t concern the transit of Russian gas through the EU territory to third countries – including to Serbia and BiH. It doesn’t therefore affect Serbia’s or BiH gas supply,” she stressed.

With regards to transit via EU territory, in her words, the EU proposal only requires more transparency on transited volumes to third countries.

EU candidate countries are expected to progressively align their legislation with the EU acquis and rules

However, EU candidate countries are expected to progressively align their legislation with the EU acquis and rules as part of the accession process, Itkonen pointed out and added that it includes REPowerEU regulation once it becomes EU law.

Of note, the draft regulation to phase out imports of Russian natural gas constitutes a central element of the EU’s REPowerEU roadmap to end the EU’s dependency on Russian energy.

According to Itkonen, as a way to ensure security of supply, candidate countries including Serbia should diversify away from unreliable energy suppliers such as Russia. Following Russia’s war of aggression on Ukraine, it became evident how important this is and what problems it can create for any European country, she asserted.

“The EU is supporting the WB countries for diversifying their energy supplies”

Anna-Kaisa Itkonen (photo: European Commission)

“The EU is supporting the Western Balkan countries for diversifying their energy supplies and for closer integration into the EU’s energy networks, both for electricity and gas, as well as through investments in renewable energy and decarbonization efforts,” Itkonen underlined.

After energy ministers in the Council of the EU have agreed on the institution’s negotiating position on the European Commission’s draft regulation, the next step is the adoption of the European Parliament’s position.

The council and the parliament would then start negotiations on the regulation. When the two institutions approve a regulation, it directly applies to all member states.

The meeting of the so-called Energy Council highlighted several issues and concerns among EU member states about the proposed ban on Russian natural gas.

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October 30, 2025
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Serbia warns of gas crisis as EU transit ban threatens Balkan Stream supply

Serbia is in a very difficult situation because, as of January 1, 2026, it won’t be able to receive Russian natural gas via Bulgaria, according to the Ministry of Mining and Energy.

Serbia receives natural gas from Russia via the Balkan Stream. The pipeline is an extension of TurkStream that passes through Bulgaria and Serbia. Bosnia and Herzegovina and Hungary, Serbia’s neighbors, are also supplied via Balkan Stream. TurkStream delivers gas from Russia across the Black Sea to Turkey.

Serbia is facing a very difficult and almost dead end situation due to the European Union’s ban on the transit of Russian gas through the EU to third countries, which will come into effect on January 1, 2026, according to Serbia’s Minister of Mining and Energy Dubravka Đedović Handanović.

Đedović Handanović: Bulgaria won’t allow the flow of Russian gas through the Balkan Stream

Bulgaria won’t allow the flow of Russian gas through Balkan Stream, which will negatively impact Serbia, she stressed.

The European Commission set out a plan in May to phase out the purchases of Russian natural gas, including in liquefied natural gas (LNG), and oil, by the end of 2027. The council now confirmed that imports of Russian gas will be prohibited from January 1, 2026, while maintaining a transition period for existing contracts.

Đedović Handanović: We are doing everything in our power, but the situation is almost hopeless, considering the current situation regarding NIS

Yesterday, the Council of the European Union agreed on its negotiating position on the European Commission’s draft regulation to phase out imports of Russian natural gas. When the European Parliament adopts its own position, it can start negotiating with the council.

When the two institutions approve a regulation, it directly applies to all member states.

Đedović Handanović expressed hope that a solution would be found due to, as she put it, President Aleksandar Vučić’s excellent relations with world leaders.

“We are doing everything in our power, but it is an almost dead end situation, considering the current situation regarding Naftna industrija Srbije [NIS]. Our country, which is not involved in any conflict, has found itself affected through no fault of its own. Despite everything, we will do our best, as we have so far, so that citizens don’t feel the problems we are facing,” Đedović Handanović underlined.

Namely, the United States imposed sanctions on October 9 against NIS, Serbia’s national oil importer, refiner, and operator of a chain of service stations.

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October 14, 2025
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Serbia’s economy in uncharted territory amid imminent US sanctions against oil company NIS

For NIS in Serbia, doing business will become exceptionally difficult from tomorrow, when the United States imposes sanctions, starting with payment systems. The same goes for any enterprise cooperating with the oil refiner and distributor, majority owned by Russia’s Gazprom Neft and another firm controlled by Gazprom.

Nine months after the US announced sanctions against NIS, which were postponed several times, they are coming into force tomorrow morning. Apparently, the American Office of Foreign Assets Control (OFAC) is imposing restrictive measures for Serbia’s national oil importer, refiner and operator of a chain of service stations. Croatian company Jadranski naftovod (JANAF), which depends to a great extent on supplying NIS, said the deliveries can last until October 15.

The US and the United Kingdom announced sanctions early this year against Russian state-owned Gazprom Neft, which at the time held 50% of ownership, while its parent Gazprom controlled another 6.2%. After a reshuffle, Gazprom Neft now has 44.9% of NIS, and Intelligence, a firm within Gazprom’s system, owns 11.3%. Serbia’s stake is 29.9%.

Plan B has numerous unknowns

The oil refinery in Pančevo is the only diesel and gasoline producer in Serbia and it dominates the market by far. According to media reports, NIS has considered switching to cash payments, with the exception of the domestic currency system DinaCard, and transferring all its accounts to the state-owned Postal Savings Bank.

It is unlikely that the company would be able to cover all the logistics and finances that way. At the same time, the entire Serbian economy is at risk, together with basic services for citizens. Organizing fuel imports will take time, which may lead to shortages and price hikes. Officials and the representatives of the oil sector claim that the current stockpiles can last several months.

Forced nationalization may switch energy crisis to gas supply from Russia

Back in January, President of Serbia Aleksandar Vučić immediately estimated that Russia would have to completely and urgently exit ownership. There was no success in the meantime in talks with the Kremlin and Gazprom.

“There is one possibility. If I said: I may seek nationalization of the property tomorrow. That is the last thing i would say, if I had to. I don’t want that,” Vučić stated late last week.

In case of a forced purchase of the Russian stake, the focus would turn to the supply of Russian gas through the Balkan Stream pipeline, an extension of TurkStream. Serbia still hasn’t signed a long-term contract with the Russian side, and the previous one expired in May.

To make matters worse, Bulgaria said it would end the transit of Russian gas, through Balkan Stream, for short-term arrangements. The move is part of the European Union’s measures to end the purchases of Russian fossil fuels. A total halt is scheduled for 2028. If the supply chain isn’t drastically changed, it would heavily impact Hungary, Slovakia and Serbia, together with Bosnia and Herzegovina and North Macedonia.

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September 29, 2025
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Serbia to sign agreement on gas power plant with Azerbaijan

Serbia has completed the negotiations with Azerbaijan on the construction of a natural gas power plant near the city of Niš, according to Ana Brnabić, the Speaker of the National Assembly. She also said an agreement has been reached on additional quantities of gas that would be supplied to Serbia from the Caucasian country.

The negotiations for the construction of a gas power plant in Niš have been completed, Ana Brnabić said. She added that the facility would be a joint project between Azerbaijan and Serbia, RTS reported.

In mid-November last year President of Serbia Aleksandar Vučić revealed that the government was starting talks with Azerbaijan on a possible joint construction of a 1 GW gas power plant in Niš, or two smaller units.

The agreement would likely be signed during the first meeting of the strategic cooperation council

Speaking during her visit to Azerbaijan, Ana Brnabić underlined that the signing of the gas power plant agreement would likely occur in the first meeting of the bilateral strategic cooperation council, when it is most convenient for the presidents, Aleksandar Vučić and Ilham Aliyev.

The investment near Niš would serve as an additional, significant stimulus and guarantee for Serbia’s energy security and stability, she stressed. The gas power plant will have a capacity of around 500 MW, which is of huge significance for Serbia, according to Brnabić.

The investment is estimated at EUR 600 million, she added.

An agreement reached on additional quantities of natural gas will be signed in the coming weeks

The country’s draft 2040 energy strategy includes a plan for a gas-fired cogeneration plant in Niš of 150 MW in electricity capacity and another 100 MW for heat. Another one would be built in Novi Sad. It is envisaged at 350 MW and 100 MW, respectively.

Earlier, Serbia’s Minister of Mining and Energy Dubravka Đedović Handanović stressed that the gas power plant project is important for generating baseload energy and providing the security of supply.

Brnabić also said an agreement on additional quantities of gas has been reached and that the plan was to sign it in the coming weeks. Serbia already has quantities contracted with Azerbaijan, but additional amounts have been secured at the request of President Aleksandar Vučić for the winter months, she explained.

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