Hungary is set to shut down its only nuclear power plant amid record-low water levels on the Danube River, raising concerns about electricity supply and prompting preparations for potential power rationing. The Paks Nuclear Power Plant, which provides nearly 40 to 50 percent of the country’s electricity, depends on the Danube for cooling. Due to the exceptionally low river levels, which have fallen below previous records, the plant is unable to draw sufficient water for its reactors and will undergo a controlled full shutdown starting Sunday.

Prime Minister Péter Magyar announced the shutdown, describing it as the first complete cessation in the plant's 44-year history. The plant’s output had already dropped significantly, from its usual 2,000 megawatts to under 1,000 megawatts on Friday, and further down overnight before the planned shutdown. Magyar emphasized there is no safety risk associated with the shutdown but warned of the challenges ahead as Hungary faces both extreme heat—with temperatures expected to reach 40 degrees Celsius—and simultaneous energy pressures.

In response, the government has enacted measures to ease strain on the power grid. A decree allows for the possibility of reducing electricity supply to large industrial consumers if demand threatens to overwhelm the system, although Prime Minister Magyar indicated such steps would be a last resort. An emergency task force is scheduled to assess whether mandatory consumption restrictions for major industrial users will be necessary.

Additional energy-saving actions have included halting freight rail traffic during peak hours, reducing train speeds, and switching off decorative lighting on public buildings nationwide. Hungarians have been urged to conserve electricity by limiting use of air conditioning and electric vehicle charging, especially in the evening when the power grid is under greatest pressure.

Despite roughly 8 gigawatts of solar capacity installed in recent years, which during daylight hours has supplied up to 80 percent of domestic electricity consumption, Hungary still relies heavily on fossil fuel plants and electricity imports once solar energy diminishes. Electricity imports come from an already stretched regional market, exacerbating supply challenges.

The low Danube levels and heatwave are part of a broader pattern affecting several European countries. Romania’s Cernavodă nuclear facility, also dependent on Danube water for cooling, faces a controlled shutdown as well. Meanwhile, the Rhine River has reached its lowest levels in eight years, disrupting transport corridors and industrial production in Germany. Hungary has already placed over 100 municipalities under water-use restrictions due to the drought and ongoing heatwave that have persisted since May.

Economists warn that the combination of heat, drought, and energy constraints is likely to weigh heavily on Hungary’s economy. Reduced industrial production, anticipated poor agricultural yields, and rising costs associated with electricity imports may contribute to inflationary pressures, potentially limiting the central bank’s ability to cut interest rates and support economic growth.

Slovakia, Hungary's neighbor, has signaled readiness to assist if needed, with Prime Minister Robert Fico stating the energy situation is being closely monitored. The unfolding crisis underscores the broader vulnerability of European energy and water systems to extreme climate events.