Heron Power's Strategy for Reshaping the Power Grid

In the realm of power technology, a California-based manufacturer named Heron Power is making waves with its innovative solid-state transformers. Founded by Drew Baglino in 2025, the company is aiming to bring its American-made product to market before any competitor and iterate on its first release faster.

Heron Power's transformers are designed to last 20 years, making them a reliable solution for the power industry. These transformers can convert direct current to alternating current, regulate voltage and frequency, and have the potential to modernize the grid. By making it easier and safer to add wind and solar to the power system, Heron Power's technology promises to play a crucial role in the transition towards renewable energy.

The company's solid-state transformers are attracting significant investment. In April 2025, Heron Power raised $38 million in funding, with the Series A round led by Capricorn Investment Group. Other investors include Breakthrough Energy Ventures, Energy Impact Partners, Gigascale Capital, Powerhouse Ventures, Valor Equity Partners, Tesla co-founder JB Straubel, and Tesla's former chief financial officer, Zach Kirkhorn.

The power industry has been facing a years-long global shortage of traditional transformers due to COVID-related supply chain disruptions, surging load growth, and reconstruction from extreme weather. Demand for transformers is forecast to double in the next 10 years, with wind and solar projected to be among the fastest growing sources of new power generation. Heron Power's technology, which can provide 50% more power and is roughly one-quarter of the size compared to traditional power converters, is poised to meet this growing demand.

Heron Power's technology works similarly to a small power adapter, dynamically sharing power between outlets and providing more power with a smaller size. However, it's designed for the grid, offering a significant advantage in terms of efficiency and size.

The need for more power electronics on the grid was highlighted by a major electricity catastrophe in Spain and Portugal. If Spain had more grid-forming inverters, it could have possibly avoided the blackout. Heron's transformers are designed to protect against voltage fluctuations, making them a crucial addition to the grid.

In April 2024, Drew Baglino left Tesla after 18 years as an executive. He now leads Heron Power, leveraging his extensive experience in the power industry to drive the company's innovation. With only a couple hundred to a couple thousand professionals in the world who know how to make super optimized, super cost-effective, and power-dense power converters, Heron Power is well-positioned to make a significant impact in the power industry.

Heron Power aims to have its first production line up and running by 2027. As the company continues to develop and refine its technology, it's clear that Heron Power is set to revolutionize the power industry.