NuScale Power: Regulatory Lead Clashes with Commercial Cost Hurdles

NuScale Power (NYSE: SMR) currently holds a unique position in the nuclear energy sector as the sole developer of small modular reactors (SMRs) with U.S. Nuclear Regulatory Commission (NRC) approval. This regulatory milestone, which includes the approval of its 77-megawatt design in May 2025, provides a significant first-mover advantage over competitors in the race to decarbonize the power grid. The company's success in navigating the NRC timeline is largely attributed to its reliance on light-water reactor technology. Because water-cooling is utilized in approximately 96% of existing nuclear plants, the design is familiar to regulators. This contrasts sharply with competitors like Oklo (NYSE: OKLO), which utilizes liquid sodium cooling—a technology that has not been commercially tested in the U.S. and has yet to receive full NRC approval. Despite the regulatory lead, financial viability remains a primary concern for investors. A planned project in Romania, intended to generate 460 megawatts via six modules, carries an estimated price tag of $7 billion. These high costs echo the failure of the Carbon Free Power Project (CFPP), NuScale's first planned project, which was canceled due to escalating expenses. Market sentiment has turned sharply negative, with the stock declining nearly 70% over the last six months. With a market capitalization of approximately $4 billion—roughly one-third that of Oklo—NuScale is increasingly viewed as a speculative play. The company must secure large-scale commercial contracts soon to prevent competitors from eroding its regulatory lead and capturing the emerging SMR market.