NuScale CEO signals imminent power purchase agreement with Tennessee Valley Authority, potentially securing long-term revenue.
NuScale Power (SMR) may secure a power purchase agreement (PPA) with the Tennessee Valley Authority for its 6-gigawatt small modular reactor system by the end of 2026. The deal would lock in revenue for years or decades, providing stability amid recent setbacks.
The company has faced challenges this year, including Fluor’s exit as its largest shareholder and a $507.4 million milestone payment to partner ENTRA1 Energy. Delays, rising losses, and a class action lawsuit over alleged misrepresentations have weighed on investor sentiment, driving shares down 81% over the past 12 months.
Despite risks, NuScale holds a first-mover advantage as the first SMR design approved by the U.S. Nuclear Regulatory Commission. AI-driven power demand has also boosted prospects for nuclear energy, potentially offsetting recent headwinds.