Hungary Faces First-Ever Nuclear Plant Shutdown Amid Deepening Energy, Water Crises (Worthy News Investigation)

by Stefan J. Bos, Worthy News Europe Bureau Chief reporting from Budapest, Hungary

BUDAPEST (Worthy News) – Hungary was racing Saturday to avert the first complete shutdown in the 44-year history of its only nuclear power plant after record-low Danube water levels threatened the country’s electricity supply, prompting sweeping emergency measures amid an ongoing heatwave.

Prime Minister Péter Magyar warned that the four-reactor Paks Nuclear Power Plant could be fully taken offline as early as this weekend because there is insufficient river water to cool the reactors, posing a major challenge to the nation’s economy less than four months after his landslide election victory.

The warning came hours after a second of the plant’s four reactor units was shut down, reducing electricity generation to less than one-quarter of the facility’s 2,000-megawatt capacity.

Located about 120 kilometers (75 miles) south of Budapest, the Paks plant normally generates around 40 percent of Hungary’s electricity, making it the country’s single largest source of power.

The crisis has also renewed scrutiny of the ongoing Paks II extension project. Estimated to cost 12.5 billion euros (14.7 billion U.S. dollars), it was awarded without an international tender in 2014 to Russia’s state nuclear corporation, Rosatom, and is backed by a Russian state loan of up to 10 billion euros (11.8 billion U.S. dollars). Critics have long viewed the project as a symbol of Hungary’s close energy ties with Moscow under former Prime Minister Viktor Orbán, while years of delays have raised concerns about the country’s long-term energy security.

NUCLEAR PLANT AT RISK

The emergency is not confined to Hungary. Neighboring Romania has reduced output at its Cernavodă nuclear power plant because of the drought and declared a state of alert in the energy sector.

Hungary has unveiled emergency measures aimed at preventing widespread blackouts while coping with the worsening drought affecting much of Central Europe.

Authorities plan to increase electricity imports while asking large industrial consumers—including automotive and battery manufacturers—to voluntarily reduce power consumption. Officials warned that mandatory cuts could follow if voluntary measures prove insufficient.

A government decree published Saturday allows large industrial users to be temporarily disconnected from the electricity grid if they fail to implement requested consumption reductions during a network emergency. The regulation entered into force at 7 p.m. local time.

The emergency legislation establishes different levels of network crisis, creates a Crisis Working Committee to oversee the electricity system, and authorizes the national transmission operator to order temporary power reductions from major consumers to preserve grid stability.

EMERGENCY MEASURES EXPAND

The government’s crisis plan prioritizes electricity restrictions for industry before households. Rail freight operations will be suspended during peak demand periods, decorative lighting on state buildings has been switched off, and public transportation in Budapest—including trams and metro trains—has been ordered to operate at reduced speeds to conserve electricity.

Businesses have also begun responding to the government’s appeal.

British retailer Tesco said it would dim lighting in stores, switch off beverage vending machines, and temporarily disable electric vehicle charging stations in parking lots to help safeguard electricity supplies.

Hungarian oil and gas company MOL announced it was closing its car washes, saying “every drop of water counts” as authorities seek to conserve increasingly scarce water supplies.

Restrictions have also been introduced on watering lawns, gardens, and sports fields as Hungary endures one of its worst droughts in decades.

DRINKING WATER CRISIS

The crisis has spread beyond electricity production into Hungary’s drinking water network.

In the picturesque historic town of Szentendre, just north of Budapest, several thousand residents were left without running drinking water after record demand and prolonged heat overwhelmed the local water distribution system.

Magyar said the Hungarian Defense Forces deployed two military water tankers and distributed some 7,000 bags of drinking water while urging residents to suspend lawn watering and use water only for essential purposes until supplies stabilize.

Local authorities also appealed to residents to conserve water, warning that unless consumption falls significantly, pressure losses and temporary outages could spread to additional communities.

MAGYAR FACES TEST

The growing crisis represents the biggest challenge yet for Magyar.

He blamed years of underinvestment during the 16-year rule of former Prime Minister Viktor Orbán, saying Hungary inherited “a fragile, expensive and vulnerable system.”

“We now have to operate, defend and fundamentally rebuild this system all at once,” Magyar said in a social media address.

Before the drought struck, his government had focused on dismantling Orbán’s political system, restoring the rule of law, combating corruption, and modernizing infrastructure with newly available European Union funding. Those priorities have now been eclipsed by the energy and water emergency.

ECONOMIC RISKS GROW

Economists warn the crisis could significantly slow Hungary’s recovery after nearly three years of weak industrial performance.

Mandatory energy reductions for manufacturers threaten production, while the drought is expected to severely damage agriculture, raising concerns over weaker economic growth and renewed food inflation.

The additional cost of importing electricity is also complicating government efforts to reduce the budget deficit, forcing officials to revise fiscal plans that Magyar says underestimated spending by the previous administration.

The Hungarian forint, which had been among the world’s best-performing currencies since investors began pricing in Magyar’s election victory earlier this year, weakened to a three-month low against the euro and recorded its sharpest monthly decline since October 2024 as concerns over the energy crisis rattled markets.

OUTLOOK REMAINS GRIM

Despite the deteriorating situation, Hungary’s Atomic Energy Agency said reactor cooling can continue safely even under extremely low river flows using existing technology and reserve systems.

However, officials acknowledged the broader outlook remains worrying. Historical records show the Danube typically reaches its lowest annual level in August or September.

László Nagy, deputy director of the Paks Nuclear Power Plant, said it would take about a week to restart reactor units once sufficient cooling water becomes available.
“The outlook isn’t too good, unfortunately,” Nagy told reporters alongside Magyar. “We’re facing an unprecedented situation.”

Yet amid the uncertainty, there were reminders of resilience. Along the shrinking Danube in Budapest, families wandered across newly exposed sandbars and gravel banks.

Visitors paused to look at sections of the original Liberty Bridge—then known as the Franz Joseph Bridge—that fell into the river after retreating German forces destroyed it during the Siege of Budapest in 1945. Nearby, an artist painted a landscape that, until recently, had been covered by water.

Even as Hungary grappled with an unprecedented energy and water crisis, the receding river offered a striking reminder of both the scars of history and the enduring spirit of those living beside it.

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