NuScale Power Corporation (SMR Quick QuoteSMR - Free Report) is approaching a potentially important commercial inflection point as ENTRA1 Energy advances discussions with the Tennessee Valley Authority toward definitive power purchase agreements. However, the stock has lost more than 75% over the past year, underscoring how much investor sentiment has weakened despite the company’s progress toward commercialization.

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A completed agreement could move NuScale beyond years of readiness spending and into licensing, front-end engineering and equipment negotiations, creating a clearer path to revenue before eventual module deliveries.

NuScale’s TVA Opportunity Could Reach Gigawatt Scale

The ENTRA1-TVA collaboration contemplates up to 6 gigawatts of new nuclear capacity using NuScale technology. That scale makes the proposed program NuScale’s clearest route to a major U.S. commercial deployment and could create work across licensing, engineering and future module supply.

The broader advanced-nuclear market is also moving toward deployment. GE Vernova (GEV Quick QuoteGEV - Free Report) , through GE Vernova Hitachi Nuclear Energy, has the BWRX-300 under construction in Canada, while the U.S. Nuclear Regulatory Commission is reviewing TVA’s application for a BWRX-300 at Clinch River. Oklo Inc. (OKLO Quick QuoteOKLO - Free Report) is developing fast-fission power plants and related fuel-cycle capabilities, underscoring the competition to convert nuclear technology into operating assets.

Image Source: NuScale Power Corporation

SMR Is Waiting for a Definitive Commercial Trigger

Management said in August 2026 that ENTRA1-TVA discussions were active and progressing. NuScale is prepared to begin licensing, front-end engineering and original equipment manufacturer negotiations once definitive agreements are completed.

That makes the power purchase agreement process a critical gateway. Until agreements are signed, the opportunity remains prospective, and the timing of meaningful project revenues remains uncertain.

NuScale Can Reuse Prior Licensing Work

NuScale estimates that about 60% of work from a previous U.S. combined construction and operating license application can be reused for a future domestic project. Management said this would be among the first initiatives after power purchase agreements are in place.

Reuse could reduce duplicated effort as a new customer project moves into site-specific licensing. It does not eliminate the regulatory process, but it gives NuScale a base of completed work that may help advance a U.S. project more efficiently.

SMR Has Invested Ahead of a Potential TVA Deal

NuScale has already spent to prepare for deployment. Detailed design work for critical-path components is substantially complete, and agreements are in place with more than half of its network of more than 60 specialized suppliers.

Long-lead material work in process reached $68.6 million at June 30, 2026. The company also ended the second quarter with about $1.9 billion in cash, cash equivalents and short- and long-term investments, providing capacity for working capital, supply-chain investment, design finalization and fuel-system readiness before substantial customer revenue arrives.

NuScale’s Ranking Adds Support but Not Contract Certainty

TVA could become the commercial trigger that shifts NuScale from readiness spending toward a larger revenue-producing program. The opportunity is sizable, but the investment case still depends on discussions becoming binding agreements and projects progressing through licensing and execution.

SMR currently carries a Zacks Rank #2 (Buy) and a Momentum Score of A, which support a constructive near-term view. Its Value Score of F, Growth Score of F and VGM Score of F are less favorable. The combination favors attention to near-term momentum while keeping contract conversion and execution risk central to the outlook.

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