Dive Brief:

• The Tennessee Valley Authority announced Monday it has signed an agreement with ENTRA1 Energy to develop up to 6 GW of new nuclear power in the largest U.S. small modular reactor deployment program to date.
• The agreement calls for ENTRA1 to develop and own six “energy plants” across TVA’s seven-state territory. The nuclear company would then sell their output to the federal utility, potentially enough to power 4.5 million homes “or 60 new data centers,” TVA said in a statement.
• The project will utilize small modular reactors developed by NuScale Power. ENTRA1 holds the rights to commercialize, distribute and deploy NuScale’s products and services.

Dive Insight:

TVA’s announcement did not contain a project timeline or financial terms, and the utility said the memorandum of understanding is confidential.

“TVA is leading the nation in pursuing new nuclear technologies, and no utility in the U.S. is working harder or faster than TVA,” utility President and CEO Don Moul said in a statement. The agreement with ENTRA1 “highlights the vital role public-private partnerships play in advancing next-generation nuclear technologies.”

The Nuclear Regulatory Commission in May approved NuScale’s 77-MW power module and the company’s design for a 462-MW small modular reactor power plant.

TVA and ENTRA1 said they are “identifying opportunities to work with other federal agencies and explore potential sites with new nuclear generation and joint gas-fired capabilities.”

ENTRA1 is an independent global energy production company and NuScale’s strategic partner. The two companies have an existing joint venture, ENTRA1 NuScale LLC.

“This is the energy needed to power America’s economic prosperity and fuel artificial intelligence, quantum computing and advanced manufacturing,” TVA said.

In an annual report submitted to Congress in May, TVA officials said in recent years the region it serves has grown “three times faster than the national average, resulting in an increase in forecasted demand for electricity. To address the need for more electricity, TVA is undertaking one of the largest capital investments in TVA history.”

TVA said it expects to invest more than $19 billion to build generation and update its power and transmission systems. As of September 2024, the utility had 3,570 MW of generation under construction and an additional 1,950 MW pending environmental reviews.