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Will TVA's 6-GW Program Boost NuScale Power's Long-Term Growth?
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Key Takeaways
NuScale Power may supply up to 72 modules under TVA's planned 6GW nuclear program.
NuScale Power could start earning service revenues once ENTRA1 signs definitive power purchase agreements.
Financing talks and engineering work are underway to support the multi-plant deployment.
NuScale Power (SMR - Free Report) is progressing on a large potential deployment opportunity through the ENTRA1 Energy and Tennessee Valley Authority (TVA) program. TVA has announced an agreement to purchase power from ENTRA1 through a planned 6-gigawatt nuclear program. The program could involve the deployment of 72 NuScale Power Modules deployed across six plants in TVA’s seven-state service region.
This represents one of the largest nuclear development programs in the United States and could support rising electricity demand from industries, such as AI data centers and advanced manufacturing. ENTRA1 and TVA are continuing discussions toward a definitive power purchase agreement (PPA). Project teams have conducted site visits and engineering evaluations, and potential locations for the first plant have been identified.
During the fourth quarter, management stated that ENTRA1 is also assembling a project infrastructure team that includes engineering firms, construction contractors, investors and legal advisers to support project execution. Financing discussions are also progressing. Management said several major financial institutions are working with ENTRA1 on the project financing structure, and one major institution has already signed a multibillion-dollar term sheet. These discussions are expected to support the funding required for the development of the small modular reactor power plants under the TVA program.
NuScale Power expects the project to generate revenues once the PPA is signed. Management said the company could begin earning service revenues from activities such as combined operating license application work and FEED services related to ENTRA1 plants. Once the PPAs are signed and financing is secured, the 6 GW TVA opportunity could become a major revenue driver for NuScale Power.
NuScale Power Faces Stiff Competition
Despite NuScale Power’s advancements in small modular reactor technology, the company faces stiff competition in the nuclear energy industry from companies such as Constellation Energy (CEG - Free Report) and GE Vernova (GEV - Free Report) .
In February 2026, GE Vernova and Xcel Energy signed a long-term strategic partnership to support Xcel’s power generation and grid projects. Under the agreement, GE Vernova will supply gas turbines, wind turbines and grid equipment, helping Xcel secure reliable equipment supply, manage costs and deliver stable electricity to customers.
In January 2026, Constellation Energy announced that the U.S. Nuclear Regulatory Commission has approved the company’s request to upgrade the control systems at the Limerick Clean Energy Center. The project will cost $167 million and is part of the company’s larger $5.1 billion investment in Pennsylvania. This will help Constellation Energy to keep about 5,100 MW of existing power capacity running and add 1,200 MW more to help keep energy prices stable.
Shares of NuScale Power have plunged 66.7% in the past six months compared with the Zacks Electronics - Power Generation industry’s decline of 57.2%.
NuScale Power 6 Month Price Return Performance
Image Source: Zacks Investment Research
In terms of trailing 12-month Price/Book, NuScale Power shares are trading at 2.23X, lower than the industry’s average of 9.69X.
NuScale Power TTM 12M P/B Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 is pegged at a loss of 59 cents per share. The current estimate has narrowed from a loss of 62 cents per share projected 30 days ago.
View the Zacks #1 Rank List
Image: Bigstock
Will TVA's 6-GW Program Boost NuScale Power's Long-Term Growth?
Key Takeaways
NuScale Power (SMR - Free Report) is progressing on a large potential deployment opportunity through the ENTRA1 Energy and Tennessee Valley Authority (TVA) program. TVA has announced an agreement to purchase power from ENTRA1 through a planned 6-gigawatt nuclear program. The program could involve the deployment of 72 NuScale Power Modules deployed across six plants in TVA’s seven-state service region.
This represents one of the largest nuclear development programs in the United States and could support rising electricity demand from industries, such as AI data centers and advanced manufacturing. ENTRA1 and TVA are continuing discussions toward a definitive power purchase agreement (PPA). Project teams have conducted site visits and engineering evaluations, and potential locations for the first plant have been identified.
During the fourth quarter, management stated that ENTRA1 is also assembling a project infrastructure team that includes engineering firms, construction contractors, investors and legal advisers to support project execution. Financing discussions are also progressing. Management said several major financial institutions are working with ENTRA1 on the project financing structure, and one major institution has already signed a multibillion-dollar term sheet. These discussions are expected to support the funding required for the development of the small modular reactor power plants under the TVA program.
NuScale Power expects the project to generate revenues once the PPA is signed. Management said the company could begin earning service revenues from activities such as combined operating license application work and FEED services related to ENTRA1 plants. Once the PPAs are signed and financing is secured, the 6 GW TVA opportunity could become a major revenue driver for NuScale Power.
NuScale Power Faces Stiff Competition
Despite NuScale Power’s advancements in small modular reactor technology, the company faces stiff competition in the nuclear energy industry from companies such as Constellation Energy (CEG - Free Report) and GE Vernova (GEV - Free Report) .
In February 2026, GE Vernova and Xcel Energy signed a long-term strategic partnership to support Xcel’s power generation and grid projects. Under the agreement, GE Vernova will supply gas turbines, wind turbines and grid equipment, helping Xcel secure reliable equipment supply, manage costs and deliver stable electricity to customers.
In January 2026, Constellation Energy announced that the U.S. Nuclear Regulatory Commission has approved the company’s request to upgrade the control systems at the Limerick Clean Energy Center. The project will cost $167 million and is part of the company’s larger $5.1 billion investment in Pennsylvania. This will help Constellation Energy to keep about 5,100 MW of existing power capacity running and add 1,200 MW more to help keep energy prices stable.
NuScale Power’s Price Performance, Valuation & Estimates
Shares of NuScale Power have plunged 66.7% in the past six months compared with the Zacks Electronics - Power Generation industry’s decline of 57.2%.
NuScale Power 6 Month Price Return Performance
Image Source: Zacks Investment Research
In terms of trailing 12-month Price/Book, NuScale Power shares are trading at 2.23X, lower than the industry’s average of 9.69X.
NuScale Power TTM 12M P/B Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 is pegged at a loss of 59 cents per share. The current estimate has narrowed from a loss of 62 cents per share projected 30 days ago.
Image Source: Zacks Investment Research
NuScale Power currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.