Record-low Danube water levels are forcing Hungary's only nuclear plant into a full shutdown, wiping out close to half the country's power supply. Utilities now must lean on natural gas-fired generation and imports to cover the gap, while drought also cuts hydropower output in Serbia and fuels wildfires elsewhere in Europe.
Hungary's Paks nuclear plant is heading toward its first full shutdown in 44 years, after the Danube River dropped too low to keep its reactors cool. The outage strips away power that normally covers close to half the country's electricity needs, pushing Hungary toward costlier natural gas-fired generation to fill the gap.
Danube drought drains Paks' cooling water
Paks' four Soviet-designed reactors depend on the Danube for cooling water, and that water is running out. River levels have dropped 28 cm below the previous record low set in 2018. Output at the plant has already been throttled down to roughly 240 MW in recent days, about 12% of its normal capacity. A full shutdown is expected to start as early as Sunday, August 2, 2026.
According to Crypto Briefing: "will be completely shut down", Hungarian Prime Minister Peter Magyar warned, with the outage potentially stretching on for several weeks.
A plant that carries half the country's power
Paks normally generates around 2 GW of power, covering close to half Hungary's electricity needs. The estimated economic toll of the outage could reach $316 million to $632 million. Its four Soviet-era reactors, run by state-owned subsidiary MVM Paks Nuclear Power Plant Ltd, carry lifetime extensions stretching into the 2030s.
France faced a similar squeeze in 2022, when warm river water forced several of its nuclear plants to cut output. Yet France could absorb the hit with 56 operational reactors, while Hungary has only the one plant now going dark.
Gas fills the gap as the drought spreads
Hungary will need to boost electricity imports from neighboring countries, and natural gas-fired generation could pick up some of the slack, though at elevated costs.
Hungary is not the only country feeling the drought. Danube levels in Serbia fell to their lowest since 1985. The drop cut the daily output of the country's biggest hydropower plant to only 20%, Serbia's energy minister said Sunday. Water-use restrictions now cover more than 100 cities and villages in Hungary as falling river levels also disrupt shipping and tourism.
Elsewhere in Europe, the same heat and lack of rain have fueled wildfires from Greece to Spain this summer.
Sources: Crypto Briefing, Commodities & Futures News
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