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NuScale's Modular Reactors Offer Flexible Clean Energy Supply

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Key Takeaways

  • SMR's 77-MW reactor design secured NRC approval in 2025, building on regulatory milestones in 2020 and 2023.
  • Factory-built modules simplify assembly, while passive safety systems enable shutdown without external power.
  • ENTRA1 and TVA are planning up to 6 GW of capacity, while Romania's RoPower project advances a 6-module plant.

NuScale Power Corporation’s (SMR - Free Report) develops small modular nuclear reactors designed to provide reliable electricity with lower construction complexity than conventional nuclear plants. Its NuScale Power Module uses established pressurized water reactor technology and is the first small modular reactor design to receive approval from the U.S. Nuclear Regulatory Commission. The company secured Standard Design Approval in 2020, Design Certification in 2023 and another Standard Design Approval for its 77-megawatt design in 2025. These regulatory milestones give NuScale an advantage as it works toward commercial deployment.

Each NuScale Power Module can generate 77 megawatts of electricity, with a targeted capacity factor exceeding 95%. It uses commercially available low-enriched uranium fuel and requires refueling every 18-21 months. Factory-built components can be transported to construction sites, helping simplify plant assembly. The reactor also uses passive safety systems that allow it to shut down and remain cooled without external power or operator intervention. Customers can choose six-module plants or larger 12-module facilities capable of generating 924 megawatts, depending on their electricity requirements.

NuScale's modular design allows customers to expand generating capacity as demand increases. A six-module plant connected to a 230,000-barrel-per-day refinery is estimated to reduce overall plant emissions by approximately 40%. Larger facilities can supply electricity to data centers, support industrial operations or replace retiring coal plants. On commercialization, ENTRA1 Energy is working with the Tennessee Valley Authority on plans for up to 6 gigawatts of nuclear capacity using NuScale technology. Separately, Romania's RoPower project is advancing plans to install six modules at a former coal plant site.

Beyond conventional small modular reactors, companies are developing alternative nuclear technologies to meet different energy needs. These designs focus on smaller power systems, flexible deployment and specialized applications, including industrial facilities and remote locations.

Other Nuclear Reactor Designs to Watch

Oklo Inc. (OKLO - Free Report) is developing compact nuclear reactors that use liquid-metal cooling and metallic fuel instead of conventional water-cooled technology. OKLO's fast-reactor design relies on natural physical processes to maintain safety and is intended to support fuel recycling, including the potential reuse of spent nuclear fuel. Through its advanced reactor technology, OKLO aims to supply reliable electricity, nuclear fuel services and radioisotopes for industrial and commercial applications.

Meanwhile, NANO Nuclear Energy (NNE - Free Report) is developing small nuclear reactors for locations where traditional nuclear plants may be impractical. NANO Nuclear's portfolio includes the stationary KRONOS high-temperature gas-cooled reactor, the ZEUS solid-core battery reactor and the portable LOKI microreactor concept. Through these technologies, NANO Nuclear aims to supply electricity and heat to remote facilities, industrial customers and microgrids, with an emphasis on flexible deployment and smaller power requirements.

The Zacks Rundown on NuScale Power

Shares of SMR have lost more than 62% over the past six months.

Zacks Investment Research Image Source: Zacks Investment Research

NuScale Power currently has an average brokerage recommendation of 2.79 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms. 

Zacks Investment Research Image Source: Zacks Investment Research

See how the Zacks Consensus Estimate for SMR’s earnings has been revised over the past 90 days.

Zacks Investment Research Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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