Photo: MTI Hungary
On 30th July, Hungarian Prime Minister Péter Magyar issued an extraordinary announcement warning the public about the risk of an energy crisis. Magyar revealed that the 44-year-old Paks Nuclear Power Plant, the country’s sole NPP which is currently operating at nearly half of its nominal capacity, will completely halt all energy production from 4-5th August. This unprecedented measure is driven by the record low levels of the Danube River, severely hindering Paks’ operations. According to the PM, the river has dropped to an historic low of -121 centimetres at Paks, drastically below the previous record of -97 centimetres in 2018.
Meteorological forecasts indicate the water level will continue to drop, meaning the facility will not be able to restart in the short term. As a result, 2,000 megawatts of daily capacity will fall out of Hungary’s domestic energy production by 3rd August, in a country where the average daily summertime consumption is at around 6,000-7,000 megawatts. The government is facing further pressure as the gas-fired Dunamenti Power Plant, which produces an additional 400 megawatts, has also shut down due to malfunction, but is expected to be fully operational by 2nd August.
This drop in supply comes at a challenging moment as the worsening heatwave is driving up electricity demand among both residential and public consumers. While a full shutdown of the plant has never happened before, Magyar reassured citizens that this itself does not constitute a safety emergency, emphasizing that all procedures are being carried out with maximum security and in partnership with the responsible authorities.
To further mitigate the crisis, unnecessary energy consumption is being reduced in government buildings, while Parliament’s 3-4th August sessions will be postponed. The PM also urged citizens to schedule heavy electricity usage (such as charging electric vehicles and air conditioning) outside the 5:00 PM to 10:00 PM peak window. Officials noted that this responsible, self-limiting behaviour from both residential and corporate consumers is critical to maintain the functioning of the national energy grid.
Regarding the private sector, this capacity shortage requires an immediate response from the most energy-intensive industrial players. To alleviate strain on the national grid, the PM has appealed directly to major corporate consumers to make operational sacrifices. Specifically, he requested that large-scale battery factories, chemical plants and automotive manufacturing facilities voluntarily shut down their operations to help the country navigate the potential shortage.
At the same time, Magyar noted that the government has started crafting legislation “to be able to intervene, even on a mandatory basis, with the scheduled, temporary disconnection of certain large consumers in order to preserve the country’s energy security.” For businesses, this entails a direct regulatory risk if the current energy shortage transforms into a full-scale crisis. On 31st July, the PM said the government will review the energy consumption of large consumers, which could signal further changes.
Resources
