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Can NuScale's TVA Deal Unlock Its First Major Module Order?
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Key Takeaways
NuScale's partner ENTRA1 continues PPA talks with TVA, but no binding reactor module order has been secured.
The TVA deal could lead to engineering and licensing work, while module sales require a separate OEM contract.
NuScale has begun manufacturing preparations with Doosan and holds $1.9B in liquidity to support its plans.
NuScale Power Corporation (SMR - Free Report) is working toward a potential nuclear power project with the Tennessee Valley Authority (TVA) through its strategic partner, ENTRA1 Energy. During its third-quarter 2026 earnings call, management said that ENTRA1 continues discussions with TVA to finalize a power purchase agreement (PPA). The proposed project offers NuScale an opportunity to secure orders for its small modular reactors. However, the company has yet to secure a binding module order tied to the project. Progress on the TVA agreement will help determine when NuScale begins generating revenues from its reactor technology.
The next step involves converting the proposed PPA into commercial work for NuScale. Management clarified that the PPA would be signed between ENTRA1 and TVA and would not directly result in reactor module sales. NuScale expects preliminary engineering, licensing and other services to follow the agreement. Module sales would require a separate original equipment manufacturer (OEM) contract with ENTRA1. Management also estimates that 50-60% of the work completed for an earlier construction and operating license application can be reused for future projects, reducing costs and shortening the approval process.
NuScale is preparing for potential orders while commercial discussions continue. The company recently signed an agreement with Doosan Enerbility to manufacture upper reactor coolant system components for its first power module. This moves part of its manufacturing work into production before customer orders are finalized. NuScale ended September 2026 with $1.9 billion in liquidity, providing funds for these activities. However, management has not provided a firm timeline for completing the TVA agreement. Securing the PPA and subsequent OEM contract remains necessary for NuScale to begin selling modules under the proposed project.
Growing demand for reliable electricity from data centers and industrial customers is creating opportunities for nuclear power companies. While NuScale works toward securing its first major reactor module order, other energy players are pursuing long-term power agreements and expanding their nuclear development plans to meet future electricity needs.
Nuclear Power Demand Creates Growth Opportunities
Oklo Inc. (OKLO - Free Report) is advancing its nuclear power commercialization plans through the proposed 1.2-gigawatt clean energy campus in Ohio under its agreement with Meta. During its third-quarter earnings call, OKLO reported that 900 megawatts remain under review by regional electricity grid operator PJM Interconnection. OKLO is also advancing fuel procurement and project planning, although grid approvals remain necessary before power delivery begins.
Meanwhile, Talen Energy (TLN - Free Report) is pursuing additional long-term power agreements to meet growing data center electricity demand. During its third-quarter earnings call, Talen reported approximately 300 megawatts of uncontracted nuclear capacity at Susquehanna. Talen also identified roughly 6 gigawatts of baseload generation available for contracting, excluding existing commitments to Amazon Web Services. Additional agreements may secure future revenues and reduce exposure to wholesale electricity prices.
Zacks Rundown on NuScale Power
SMR shares have lost 19.4% over the past month.
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.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for SMR’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
Can NuScale's TVA Deal Unlock Its First Major Module Order?
Key Takeaways
NuScale Power Corporation (SMR - Free Report) is working toward a potential nuclear power project with the Tennessee Valley Authority (TVA) through its strategic partner, ENTRA1 Energy. During its third-quarter 2026 earnings call, management said that ENTRA1 continues discussions with TVA to finalize a power purchase agreement (PPA). The proposed project offers NuScale an opportunity to secure orders for its small modular reactors. However, the company has yet to secure a binding module order tied to the project. Progress on the TVA agreement will help determine when NuScale begins generating revenues from its reactor technology.
The next step involves converting the proposed PPA into commercial work for NuScale. Management clarified that the PPA would be signed between ENTRA1 and TVA and would not directly result in reactor module sales. NuScale expects preliminary engineering, licensing and other services to follow the agreement. Module sales would require a separate original equipment manufacturer (OEM) contract with ENTRA1. Management also estimates that 50-60% of the work completed for an earlier construction and operating license application can be reused for future projects, reducing costs and shortening the approval process.
NuScale is preparing for potential orders while commercial discussions continue. The company recently signed an agreement with Doosan Enerbility to manufacture upper reactor coolant system components for its first power module. This moves part of its manufacturing work into production before customer orders are finalized. NuScale ended September 2026 with $1.9 billion in liquidity, providing funds for these activities. However, management has not provided a firm timeline for completing the TVA agreement. Securing the PPA and subsequent OEM contract remains necessary for NuScale to begin selling modules under the proposed project.
Growing demand for reliable electricity from data centers and industrial customers is creating opportunities for nuclear power companies. While NuScale works toward securing its first major reactor module order, other energy players are pursuing long-term power agreements and expanding their nuclear development plans to meet future electricity needs.
Nuclear Power Demand Creates Growth Opportunities
Oklo Inc. (OKLO - Free Report) is advancing its nuclear power commercialization plans through the proposed 1.2-gigawatt clean energy campus in Ohio under its agreement with Meta. During its third-quarter earnings call, OKLO reported that 900 megawatts remain under review by regional electricity grid operator PJM Interconnection. OKLO is also advancing fuel procurement and project planning, although grid approvals remain necessary before power delivery begins.
Meanwhile, Talen Energy (TLN - Free Report) is pursuing additional long-term power agreements to meet growing data center electricity demand. During its third-quarter earnings call, Talen reported approximately 300 megawatts of uncontracted nuclear capacity at Susquehanna. Talen also identified roughly 6 gigawatts of baseload generation available for contracting, excluding existing commitments to Amazon Web Services. Additional agreements may secure future revenues and reduce exposure to wholesale electricity prices.
Zacks Rundown on NuScale Power
SMR shares have lost 19.4% over the past month.
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.
See how the Zacks Consensus Estimate for SMR’s earnings has been revised over the past 90 days.
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.