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Low Danube escalates power crisis in Hungary and Romania - Finance news and analysis from Global Banking & Finance Review
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Low Danube escalates power crisis in Hungary and Romania

Published by Global Banking & Finance Review

Posted on July 31, 2026

4 min read

· Last updated: July 31, 2026

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Danube Power Crisis: Hungary and Romania Hit by Nuclear Output Cuts

Impact of Danube Water Levels on Nuclear Power and Energy Supply

Power Plant Shutdowns and Emergency Measures

BUDAPEST, July 31 (Reuters) - Hungary's Paks nuclear power plant, which generates nearly half the country's electricity, could be shut for weeks, the prime minister said on Friday, while Romania declared a state of emergency as low water levels on the Danube cut power output.

Both countries face increasing their reliance on power imports during a heatwave that is expected to boost demand for electricity.

Electricity Demand and Import Strategies

In Hungary peak evening electricity demand is expected to rise by 20%, prompting the government to ask major industrial users to curb consumption.

Romania's Prime Minister Ilie Bolojan said the country would seek to import more electricity from Ukraine, Greece and Bulgaria.

Government Statements and Nuclear Output Reductions

"I have declared a state of alert on a national level throughout August as a result of the drop in electricity production because of drought and low river volumes, especially the Danube," Bolojan said.

"Both (Romania and Hungary) have cut our nuclear power production in half."

Romanian nuclear power producer Nuclearelectrica has shut down one of its reactors.

Paks' four Russian-made reactors are operating at less than 50% of their combined 2 gigawatts capacity and are expected to be shut down completely on Tuesday or Wednesday for the first time in 44 years as water levels are forecast to fall further.

Water from the Danube is used to cool the facility.

The reactors can be restarted once water levels recover sufficiently for safe operation, "but this is not expected to happen in the next weeks," Hungarian Prime Minister Peter Magyar said during a briefing at energy company MOL's Danube refinery in Szazhalombatta.

Magyar said on Thursday that Hungary could meet its energy needs through imports. However, the combination of lower domestic generation and higher demand could create a critical situation for the power system.

Government and Industry Response

Energy Consumption Reduction Initiatives

MAGYAR ASKS COMPANIES TO CUT ENERGY USE

To ease pressure on the power grid, Magyar had asked major industry companies, including carmakers and battery manufacturers, to reduce electricity and water consumption.

He said that MOL, one of Hungary's biggest electricity consumers, was cutting its usage by 40%. Samsung SDI said that its battery plant north of Budapest was cutting water consumption by 50% and reducing electricity use by 10% during critical evening hours.

Bolojan said Romania imports 1700 MW to cover peak consumption in the evening at an overall daily consumption of 7000 MW.

Future Energy Strategies

Investment in Renewable Energy

HUNGARY TO INVEST IN WIND ENERGY

Later on Friday Magyar said that using European Union funds as well as private capital, Hungary will develop 4 gigawatts of wind energy capacity by 2030 to diversify its energy sources and to make electricity supply more independent of the Danube.

"European Union funds will create the opportunity to develop Hungary's entire energy network and the much more widespread use of wind energy will be part of this," Magyar said at a briefing at the Paks nuclear plant.

European Union Monitoring and Response

European Commission spokesperson Anna-Kaisa Itkonen told Reuters the Commission was closely monitoring the electricity supply situation in Romania, Hungary and the wider southeast European region.

There is no immediate security-of-supply concern and the Commission is ready to convene an ad hoc meeting of the European Union's Electricity Coordination Group if needed, she said.

Additional Information

($1 = 0.8692 euros)

(Reporting by Anita Komuves and Luiza Ilie, additional reporting by Alan Charlish. Editing by Mark Potter and Barbara Lewis)

Key Takeaways

  • Hungary’s Paks nuclear plant, which supplies about half the country’s electricity, is facing its first full shutdown in 44 years due to unprecedented low Danube levels, and may remain offline for weeks (apnews.com).
  • Romania has declared a state of alert for August after shutting down one reactor at Cernavodă, with Danube flow at just ~1,700 m³/s—about one-third of the July average—forcing increased reliance on imports (apnews.com).
  • Hungary is asking major industrial users to curb consumption amid an expected 20% rise in peak demand, while planning to add 4 GW of wind capacity by 2030 using EU and private funds to reduce future reliance on river-cooled power generation (apnews.com).

References

Frequently Asked Questions

Why is Hungary's Paks nuclear power plant at risk of shutdown?
Low water levels in the Danube, needed for cooling, have forced the Paks nuclear plant to operate below 50% and could lead to a full shutdown.
How is Romania responding to the drop in power production?
Romania declared a state of emergency, shut down a nuclear reactor, and will import more electricity from neighboring countries.
What steps are being taken to reduce electricity consumption?
Both Hungary and Romania have asked major industrial users to cut energy use, with companies like MOL and Samsung SDI reducing consumption significantly.
What long-term solutions are planned for Hungary's energy crisis?
Hungary plans to develop 4 gigawatts of wind energy by 2030 using EU funds and private capital to diversify energy sources.

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