Hungary is dealing with a severe heatwave that has caused it to temporarily shut down its Paks Nuclear Plant on July 29. This decision was made because the water levels in the Danube River had dropped to an all-time low of just 30 centimeters in Budapest. The plant, which typically generates half of the country's electricity, had to close for the first time in its history due to the lack of cooling water available.
As a result of the plant shutdown, Hungary turned to its neighbors for electricity imports to make up for the shortfall. Ukraine became a key supplier, providing 61 gigawatt hours in the last week of July alone, according to a report by EU media outlet Euractiv. Ukraine is now the second-largest electricity exporter to Hungary, following Poland. This reversal is significant because Ukraine has largely relied on Hungary for power imports in the past.
This shift in energy flow became possible after Ukraine synchronized its electricity grid with the broader EU network in 2022. The move was expedited to help Kyiv maintain stable power supply during the ongoing conflict with Russia. With this synchronization, electricity can flow in both directions between Ukraine and its European neighbors. Hungarian Prime Minister Peter Magyar shared on August 6 that the Paks Nuclear Plant is starting to resume operations as water levels in the Danube gradually increase.
Magyar warned that despite the progress, electricity consumption will need to be voluntarily reduced on hot days to manage the strain. A spokesperson for the European Commission assured that the current situation in countries dealing with production drops due to the heatwave is stable, and there are no urgent supply or security risks. The Paks nuclear power plant is currently operating at around 12% of its capacity, and if Danube water levels continue to drop, the plant will have to be shut down completely.
Due to the energy crisis, the Hungarian government has been urging large energy consumers to conserve electricity. As a result, several car manufacturers, including Audi Gyor, oil and gas company MOL, and other large companies have scaled back production. Hungary's energy crisis — the worst in decades — is so severe because of the country's unfavorable energy mix. The plant cannot simply be brought back online quickly, and the process takes a considerable amount of time. Therefore, Hungary's energy crisis will continue for at least several more weeks, during which the country will have to import electricity at high prices.
In response to the crisis, the new government under Peter Magyar has announced a comprehensive review of Hungary's energy development strategy. Romania is also facing a similar, though somewhat less severe, energy crisis. The Cernavoda nuclear power plant, located on the Danube, produces roughly one-fifth of Romania's electricity. Due to the river's exceptionally low water level, one of the plant's two 700-megawatt reactors was taken offline last week. Romanian authorities are blasting a rock formation to divert more water into the Danube's eastern branch, where the nuclear plant is located, and dumping dozens of tons of rock into the river to channel more water into that branch.