Low Danube escalates power crisis in Hungary and Romania

A severe heatwave and drought in Eastern Europe have led to a potential shutdown of Hungary's Paks nuclear power plant and a state of emergency in Romania, prompting power import requests.

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.

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.

"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. 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. 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 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.

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