The authority has invested over $4bn in the Bellefonte Nuclear Plant property in northern Alabama in the past four decades.
TVA president and CEO Bill Johnson said: "We sought public comments on whether to sell or keep the property and for what uses.
"Our analysis of the property and its potential uses, and input from public officials, customers and Valley residents, indicate that offering the property for sale could better serve the public."
The 1,600-acre nuclear facility includes two unfinished nuclear reactors two unfinished nuclear units, plus a number of supporting structures, including transmission switchyards, warehouses and parking lots, suitable for a variety of industrial, commercial or residential use.
TVA, the biggest public utility in the US, has preserved the plant for future nuclear generation but a continued flat demand for electricity and lower natural gas prices have made large scale power projects not useful under current conditions.
"Strong financial management also includes evaluating asset needs today and in the future and making the decisions necessary to adjust for continued flat demand in electricity. At the meeting, the board voted to surplus the Bellefonte Nuclear Plant property in northern Alabama so it can be offered for sale and potentially put to better use," the utility said in a statement.
The authority said that it will go for auction process for the sale of nuclear plant.
TVA stopped construction of the nuclear units in 1988 but has been approached by several parties for leasing or selling of the plant site.
In 1997, the utility contemplated using a part of the infrastructure at the facility to build a natural gas power plant. Last month, it had invited public comments on the sale of Bellefonte nuclear plant site.
