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Hungary PM flags "critical" days ahead with looming nuclear shutdown - Finance news and analysis from Global Banking & Finance Review
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Hungary PM flags "critical" days ahead with looming nuclear shutdown

Published by Global Banking & Finance Review

Posted on August 2, 2026

2 min read

· Last updated: August 2, 2026

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Hungary Braces for Power Crisis as Danube Drought Halts Nuclear Plant

Impact of Danube Drought on Hungary's Energy and Economy

Critical Situation at Paks Nuclear Power Plant

BUDAPEST, Aug 2 (Reuters) - Hungary faces a critical five days, Prime Minister Peter Magyar said on Sunday, as the drying out of the Danube forces the country's sole nuclear power plant to shut for the first time in over four decades, with a new heatwave looming.

Large parts of Europe have been hit by prolonged heat and drought, lowering river levels and raising concerns about water supplies, river transport and power generation.

Hungary's 2 gigawatt Paks power plant, which runs four Russian-built reactors, was operating at just over 10% of its total capacity on Sunday after the Danube, whose waters it uses as a coolant, fell to a record low.

The water authority was projecting that the level of the river, which flows from Germany to the Black Sea, would drop further in the coming days.

Government Response and Warnings

"We are facing the most critical five days ahead," Magyar said in a Facebook video. "Tomorrow, the Paks power plant will not be generating, while the hottest, 40-degree (Celsius, 104 Fahrenheit) days are ahead.

"The power grid, our public services and ourselves will all come under enormous strain," said Magyar, who has warned that Paks could remain idle for weeks.

Broader Effects on Hungary

Disruption to Shipping, Tourism, and Water Use

Falls in water levels have also disrupted shipping and tourism in Hungary and triggered water-use restrictions in more than 100 cities and villages, including on the outskirts of Budapest, according to government records.

Calls for Energy Conservation

Magyar reiterated a call for companies, public institutions, local governments and households to significantly reduce or reschedule electricity use during evening peak hours between 5 p.m. and 10 p.m.

The government will decide on Sunday whether to apply mandatory electricity use restrictions for large companies from Monday, he said.

Economic Impact

The crisis could cost Hungary 100 billion to 200 billion forints ($315 million to $630 million) due to the surging price of imported electricity, Mark Radnai, vice chairman of Magyar's Tisza party, said on Facebook.

($1 = 316.3700 forints)

(Reporting by Gergely Szakacs; Editing by Kevin Liffey)

Key Takeaways

  • For the first time in 44 years, the Paks nuclear plant is fully shut down as Danube water levels hit historic lows.
  • Restoring the plant could take up to a week if all four reactors remain offline, heightening reliance on imports and energy restrictions.
  • The drought and heatwave have disrupted river transport, tourism, and triggered widespread water and electricity conservation measures, with potential economic costs up to 200 billion forints.

Frequently Asked Questions

Why is Hungary's Paks nuclear power plant shutting down?
The Paks plant is shutting down because record-low Danube river levels caused by drought and heatwave prevent it from cooling its reactors.
How long might the Paks nuclear plant remain offline?
Prime Minister Peter Magyar warned that the plant could remain idle for weeks if current conditions persist.
What impact does the shutdown have on Hungary's electricity supply?
The shutdown puts strain on the power grid and may result in mandatory electricity use restrictions for major companies and households.
What economic cost could Hungary face due to the power crisis?
The crisis could cost Hungary between 100 billion and 200 billion forints ($315 million to $630 million) due to increased electricity imports.
What steps is the Hungarian government taking to address the crisis?
The government is urging energy savings, considering mandatory restrictions, and monitoring the situation daily.

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