NuScale Power: Pioneering the SMR Breakthrough in the Nuclear Renaissance

The nuclear renaissance is no longer a distant dream—it's a reality being shaped by companies like NuScale Power Corporation. As the sole developer of a U.S. Nuclear Regulatory Commission (NRC)-certified small modular reactor (SMR), NuScale has emerged as a leader in a sector poised to redefine clean energy. But with no revenue yet on the books, investors must weigh its strategic strengths against the risks inherent to pre-commercial innovators.

A Regulatory Milestone: NuScale's 77 MWe SMR Approval

The NRC's June 2025 certification of NuScale's uprated 77 MWe SMR design is a watershed moment. This approval, completed ahead of schedule and under budget, expands the company's offering from its initial 50 MWe SMR (certified in 2023) to a modular system that can scale up to 924 MWe using 12 units. Crucially, the design retains the same passive safety features—relying on natural convection and gravity—eliminating the need for external power during cooling.

The regulatory win positions NuScale to compete not just with traditional nuclear plants but also with emerging SMR rivals like X-energy and Natura Resources. Its dual approvals (50 MWe and 77 MWe) create flexibility for customers, whether they need a 462 MWe six-module plant or smaller configurations.

Partnerships and Global Ambitions

NuScale's partnership with ENTRA1 Energy is its commercial linchpin. As its exclusive global distributor, ENTRA1 has the rights to deploy NuScale's SMRs across industries, from utilities to data centers. The pair's first major project, Romania's 462 MWe RoPower plant, is already moving forward, with manufacturing partner Doosan producing modules in South Korea.

Internationally, NuScale is also expanding its footprint through “Energy Exploration” (E2) Centers—training hubs for SMR operators at universities like George Mason. These centers address a critical bottleneck: a skilled workforce to run future reactors.

Technical and Economic Advantages

NuScale's design choices offer distinct advantages. Unlike some competitors requiring high-assay low-enriched uranium (HALEU), its reactors use conventional fuel, reducing reliance on scarce materials and simplifying supply chains. The 77 MWe upgrade improves cost efficiency by boosting output without compromising safety, a key factor for utilities seeking affordable carbon-free power.

The U.S. Department of Energy's $575M investment in NuScale underscores its role in U.S. energy strategy. This funding, combined with the NRC's streamlined approval process, suggests the Biden administration's climate goals are accelerating SMR adoption.

Risks: Pre-Revenue Uncertainties and Regulatory Hurdles

Despite its progress, NuScale remains a pre-revenue company with no operating plants. Its success hinges on securing its first U.S. customer by year-end—a critical step to justify construction costs. The canceled Carbon Free Power Project in Idaho (2020) serves as a cautionary tale: without firm customer commitments, projects stall.

Regulatory risks linger. Even with NRC design certification, site-specific permits and operational licenses could take up to 30 months. The Trump administration's push to expedite approvals offers some optimism, but delays remain a possibility.

Competitor pressure is another concern. While NuScale's NRC certification is a moat, rivals like X-energy (which uses pebble-bed reactors) or Natura Resources (uranium-free designs) may carve out niches. NuScale's reliance on conventional fuel could also become a liability if HALEU supply issues ease.

Investment Considerations: High Risk, High Reward

For investors, NuScale represents a bet on nuclear's comeback—but one with significant volatility. Its stock has already seen swings tied to regulatory news and partnership announcements.

Key metrics to watch include:
- Customer wins: A U.S. contract by year-end would validate NuScale's commercial viability.
- Cost discipline: Staying within budget on first projects will be critical to credibility.
- DOE and regulatory support: Continued government backing could unlock financing and accelerate timelines.

Verdict: A Leader, But Not Without Flaws

NuScale's NRC-certified SMRs and strategic partnerships make it the most advanced SMR developer in the U.S. Its technical choices—conventional fuel, scalable modules—position it to serve diverse markets, from industrial complexes to island nations. However, its reliance on regulatory tailwinds and customer commitments keeps it in the high-risk, high-reward category.

For investors willing to tolerate uncertainty, NuScale offers a direct play on the nuclear renaissance—a sector that could grow exponentially as nations decarbonize. But tread carefully: without revenue or operational proof, this is a stock for long-term, risk-tolerant portfolios.

Final Note: Monitor NuScale's progress on the RoPower project and its Q4 2025 customer hunt. A missed deadline could trigger skepticism, while success might propel it from innovator to industry pioneer.