Hungary is preparing for possible electricity rationing as record-low water levels on the Danube River have forced a complete shutdown of the country’s sole nuclear power plant. The Paks facility, which generates up to 40 percent of Hungary’s electricity, depends entirely on the Danube for cooling and lacks any alternative water source.
Prime Minister Péter Magyar highlighted the urgency of the situation in a video message, stating that the coming days would be the most critical, with temperatures expected to reach 40 degrees Celsius. He warned that the shutdown of the Paks plant would place significant pressure on the nation’s electricity system, public utilities, and consumers.
On Saturday, the government issued a decree permitting the reduction of energy supplies to major industrial users if the power grid experiences unsustainable strain. Magyar emphasized that such measures would be a last resort, adding that an emergency task force was scheduled to meet to determine whether mandatory electricity consumption restrictions for large industrial consumers would be necessary beginning Monday.
The Paks nuclear plant, built with Soviet-era technology in the 1980s, has never before been taken offline due to environmental conditions. The plant’s operator stated it is preparing for a controlled shutdown of its remaining operational reactor, and the government assured the public that there is no safety risk associated with this process.
To mitigate the electricity shortfall, authorities have implemented several energy-saving measures. Freight rail traffic is suspended during peak hours, train speeds have been reduced to conserve power, and decorative lighting on public buildings has been switched off nationwide. Magyar has also urged businesses and households to limit electricity use, particularly by restricting air conditioning and electric vehicle charging during evening hours when grid demand peaks.
Hungary has expanded its solar power capacity to approximately 8 gigawatts in recent years, which has helped offset some of the nuclear output reductions. Data from the national grid operator Mavir indicate that solar energy can supply up to 80 percent of the country’s consumption during daylight hours. However, solar output declines after sunset, requiring Hungary to rely on fossil fuel-fired power plants and increase electricity imports from regional markets already under strain.
The energy challenges faced by Hungary reflect a wider regional trend brought on by extreme weather conditions. Romania’s Cernavodă nuclear plant, which also uses the Danube for cooling, is similarly preparing for a controlled shutdown due to low river levels. In Germany, drought and heat have driven the Rhine River to its lowest levels in eight years, disrupting a major trade route and prompting some manufacturers to reduce production.
Economic analysts warn that the combined effects of the heatwave, drought, and power shortages are likely to hamper Hungary’s economic performance. Industrial production is expected to slow, agricultural output may be unusually low, and the need for costly electricity imports could exacerbate inflationary pressures. These factors may constrain the Hungarian central bank’s ability to lower interest rates to stimulate economic growth.