Drew Baglino, a former executive at Tesla, has launched a new startup named Heron Power, which is focused on the development of solid-state transformers for the electric grid. According to reports, Heron Power is in the process of raising between $30 million and $50 million for a Series A funding round, with Capricorn Investment Group expected to lead this effort. Baglino joined Tesla in 2006, just two years before Elon Musk took the helm as CEO. Over the years, he advanced within the company, playing a pivotal role in designing the powertrain for the first Model S. He also led engineering efforts for Tesla’s battery storage products and ultimately became the senior vice president of powertrain and energy.
He departed Tesla in April 2023, coinciding with a substantial layoff of 10% of the company’s workforce. With Heron Power, Baglino aims to innovate an aspect of the electrical grid that has seen little change in over a century. Traditional transformers have remained largely the same, and most are now manufactured overseas. Solid-state transformers present a significant advancement, providing better voltage regulation, especially beneficial for power sources like solar panels and wind turbines.
These transformers are more compact, capable of rapidly switching between power sources, and can be actively managed to enhance overall grid stability. Heron Power is not alone in its quest to revolutionize the transformer market. Another startup, Singapore-based Amperesand, is also working to raise funds for its own solid-state transformers after successfully closing a $12.5 million seed round earlier in 2024. Like Heron Power, Amperesand includes professionals who have previously worked at Tesla within its leadership team.