UAMPS will not build the first small modular reactor in the US because of a 53% increase in electricity costs, NuScale will pay nearly $50 million in fines

Construction of the first US small modular reactor is cancelled. This was announced by utility Utah Associated Municipal Power Systems (UAMPS).

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NuScale has agreements to build a large number of VOYGR reactors in Ukraine, Poland, Bulgaria and Romania. The company was the first to obtain a construction licence in the US. However, the project is not destined to become a reality.

Initially, NuScale promised to sell electricity at a price of $58 per 1 MWh. UAMPS was ready to buy back 80% of the electricity generated by the small modular reactor. However, the company decided to raise the price to $89 per 1 MWh, which did not satisfy the customers.

As a result, UAMPS abandoned the project. NuScale will have to pay the utilities a compensation of $49.8 million. In addition, after this information appeared, the company's shares fell by more than a quarter (27%).

Source: Bloomberg