NuScale Power Partners with TVA for 6 GW of Small Modular Reactors, Stocks Surge

NuScale Power surged 7.6% after signing a partnership with the Tennessee Valley Authority (TVA) for 6 GW of small modular reactors. ENTRA1 Energy, a strategic partner of NuScale, will provide the reactors to TVA under the agreement. This partnership marks a significant milestone for NuScale as it expands its reach in the nuclear energy market.

NuScale Power (NYSE:SMR) saw its stock price rise by 7.6% on Tuesday after the Tennessee Valley Authority (TVA) announced a partnership with ENTRA1 Energy, a strategic partner of NuScale, to develop up to 6 GW of new nuclear power. This agreement, the largest U.S. small modular reactor (SMR) deployment program to date, is part of TVA's broader initiative to accelerate the integration of nuclear energy into its grid.

Under the agreement, ENTRA1 Energy will deploy NuScale's small modular reactors within its energy plants, aiming to provide enough energy to power the equivalent of 4.5 million homes or 60 new data centers. The power generated will be sold to TVA under future power purchase agreements, although the exact timeline for plant operation is not yet known. This collaboration underscores the importance of public-private partnerships in advancing next-generation nuclear technologies.

The partnership also highlights the significant investments TVA is making in expanding and modernizing its power system to meet the region's growing energy demands. TVA is already working with Google and Kairos Power to connect 50 MW of SMR capacity to the grid by 2030 and plans to build its own SMR at its Clinch River nuclear site in Tennessee.

The collaborative agreement with ENTRA1 Energy marks a significant step forward for NuScale, which has seen its stock price fluctuate due to the risks and uncertainties associated with nuclear power projects. NuScale's recent earnings call highlighted progress but also noted the ongoing risks and challenges in the nuclear energy sector.

The TVA-ENTRA1 Energy collaboration is part of a broader trend of increased interest in SMRs from major tech companies and utilities. Amazon, Microsoft, Google, and others have announced ambitious plans to scale up nuclear deployment, reflecting the growing demand for carbon-free energy sources.

In summary, the partnership between NuScale, TVA, and ENTRA1 Energy represents a major milestone in the nuclear energy market. This collaboration not only demonstrates the potential of SMRs to meet future energy demands but also underscores the importance of public-private partnerships in driving innovation and investment in clean energy technologies.

References:
[1] https://seekingalpha.com/news/4491398-nuscale-surges-on-partnership-with-tva-for-6-gw-of-small-modular-reactors
[2] https://www.powermag.com/tva-entra1-sign-agreement-for-6-gw-six-plant-nuclear-smr-collaboration/