NuScale Power's Nuclear Energy Prospects and Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- First SMR Approval: In 2020, NuScale became the first U.S. company to receive NRC approval for a small modular reactor (SMR) design; however, it has yet to deploy a commercial SMR model in a real-world setting, indicating a slow commercialization process.
- Surging Power Demand: Despite the expected surge in electricity demand from artificial intelligence and data centers, NuScale has not emerged as the most obvious beneficiary in the tech sector, although market expectations for its potential remain high.
- Slow Project Progress: Over the next three years, NuScale is likely to continue advancing its SMR plant project in Romania and the deployment of 6GW of SMRs to the Tennessee Valley Authority (TVA), although progress on these projects may remain slow.
- Market Opportunities and Risks: If NuScale's commercial partner ENTRA1 Energy can secure customers in the data center space, it could accelerate the TVA project's completion, potentially bringing significant revenue and validating NuScale's technology.
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Analyst Views on SMR
Wall Street analysts forecast SMR stock price to rise
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 9.570
Low
18.50
Averages
32.77
High
60.00
Current: 9.570
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor (SMR) nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate approximately 77 megawatts of electricity (MWe) or 250 megawatts thermal (gross) and can be scaled to meet customer needs through an array of flexible configurations of up to 924 MWe (12 modules) of output. In addition to the sale of NPMs, it offers a diversified suite of services throughout the development and operating life of the power plant. The Company's suite of services is planned to include licensing support, testing, training, fuel supply services and program management, among others. It serves a range of customers consisting of domestic and international governments, utilities, state-owned enterprises and technology and industrial companies in need of carbon-free, reliable energy.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Market Leadership: NuScale Power stands as the only U.S. company with an NRC-certified small modular reactor (SMR) design, and while it has yet to deploy a commercial model, its market potential remains significant.
- Project Development Focus: Over the next three years, NuScale will concentrate on developing its SMR plant in Romania and deploying 6 gigawatts of SMRs to the Tennessee Valley Authority (TVA), which is expected to validate its technology and enhance market acceptance.
- Potential Customer Expansion: In the most optimistic scenario, NuScale's commercial partner ENTRA1 Energy could secure customers in the data center sector, further advancing the TVA project and potentially generating substantial revenue for the company.
- Investor Watchpoint: Although NuScale's first SMR is unlikely to come online for several years, the success of its developing projects will directly impact the company's future position in the nuclear energy market, necessitating close attention from investors.
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- First SMR Approval: In 2020, NuScale became the first U.S. company to receive NRC approval for a small modular reactor (SMR) design; however, it has yet to deploy a commercial SMR model in a real-world setting, indicating a slow commercialization process.
- Surging Power Demand: Despite the expected surge in electricity demand from artificial intelligence and data centers, NuScale has not emerged as the most obvious beneficiary in the tech sector, although market expectations for its potential remain high.
- Slow Project Progress: Over the next three years, NuScale is likely to continue advancing its SMR plant project in Romania and the deployment of 6GW of SMRs to the Tennessee Valley Authority (TVA), although progress on these projects may remain slow.
- Market Opportunities and Risks: If NuScale's commercial partner ENTRA1 Energy can secure customers in the data center space, it could accelerate the TVA project's completion, potentially bringing significant revenue and validating NuScale's technology.
See More
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