Record-low water levels in major European rivers have disrupted transportation, reduced electricity production and revenue for businesses, raising fears of economic consequences from unprecedented heatwaves and droughts. From the port city of Rotterdam to hydroelectric plants in Serbia, navigable waterways have become less reliable for transporting goods such as grain and oil, or for generating power needed to cool millions of homes. The situation has affected more than just one region, but the entire European continent, according to Alessandro Armenia, an analyst with the data and analytics firm Kpler. The Danube River, which flows through key cities including Vienna, Budapest and Belgrade, has seen record low water levels, impacting both nuclear and hydropower generation. In Hungary, the Paks Nuclear Power Plant, which produces nearly half of the country’s electricity, will likely shut down on Monday, possibly for several weeks, due to concerns over insufficient water levels for safe operation. In Serbia, the largest hydroelectric plant, Đerdap 1, has seen its output drop to 20 percent of capacity, according to Davor Maljković, director of production at the plant. Once a wide river channel, parts of the area near the plant have revealed sandbars and shallow stretches, making navigation difficult. Water levels along the Danube entering Serbia have reached historic lows, as reported by media outlets in Vojvodina. Serbia and Hungary claim they will compensate for lost energy production by importing electricity, though this is an expensive measure given high demand. Meanwhile, Romania's state-run nuclear energy producer, Nuclearelectrica, had to shut down one of its two reactors earlier this week for the same reason, with the second potentially following soon, possibly leaving the country short of a fifth of its required electricity supply. France has also had to reduce nuclear output due to low water levels or rising river temperatures. Energy is not the only sector suffering. In Romania, Cezar Gheorghe of the agricultural market advisory firm AGRIColumn told Reuters on Friday that farmers along the Danube face challenges in exporting their crops because low water levels prevent cargo ships from using several river ports. “Only ports closer to the Black Sea remain operational. Ships can’t pass through others,” he explained. Austrian utility company Verbund, which generated around 85 percent of its electricity from hydropower last year, reported losses of approximately 370 million euros in the first half of the year compared to normal hydrological conditions. In Italy, the Po River has entered a severe drought, threatening rice crops and water supplies in northern regions. The crisis continues to unfold, affecting multiple sectors and regions across Europe, with no immediate signs of relief. As water levels remain critically low, the impact on economies and daily life grows more pronounced.
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