The power grid rarely makes headlines unless something goes wrong. Yet buried within this sprawling network of wires and substations lies a technology so fundamental that modern life would collapse without it: the transformer. These hulking metal boxes have quietly converted voltages and enabled electricity distribution for over a century, but they’re about to get their first major upgrade in generations.
Drew Baglino, Tesla’s former Senior Vice President, has emerged from the electric vehicle giant with a mission to drag the humble transformer into the digital age. His startup, Heron Power, just secured $38 million in Series A funding led by Capricorn Investment Group’s Technology Impact Fund to replace traditional transformers with solid-state alternatives that promise to be smarter, faster, and ready for our AI-powered future.
The backing comes from an impressive roster of investors, including Breakthrough Energy Ventures, Energy Impact Partners, and notably, two of Baglino’s former Tesla colleagues: co-founder JB Straubel and former CFO Zach Kirkhorn. Their participation signals more than just financial support—it represents a vote of confidence from executives who witnessed firsthand Baglino’s ability to scale revolutionary technology from prototype to mass production during his 18-year tenure at Tesla.
This isn’t just another Silicon Valley disruption story. The timing couldn’t be more critical. Our electrical grid faces unprecedented demands from electric vehicles, cryptocurrency mining, and the explosion of data centers powering artificial intelligence. Meanwhile, the integration of renewable energy sources creates new complexities that our century-old transformer technology struggles to handle efficiently.
Traditional transformers are essentially analog devices—they step voltage up or down through electromagnetic induction, but they can’t think, adapt, or communicate. Heron Power’s solid-state transformers, by contrast, use power electronics to perform the same function while adding layers of intelligence. They can respond to grid conditions in real-time, optimize power flow, and even predict maintenance needs before failures occur.
The implications extend far beyond technical specifications. Smarter transformers could dramatically reduce power outages, improve grid stability, and accelerate the transition to renewable energy. They represent the kind of foundational infrastructure upgrade that enables everything else we want to build—from widespread EV adoption to the massive computational resources required for advancing AI.
What makes Baglino’s approach particularly compelling is his track record. At Tesla, he helped scale electric vehicle production from thousands to millions of units annually, proving that established industries can be reimagined with the right combination of engineering talent and capital. The $38 million backing suggests investors believe the same transformation is possible for grid infrastructure.
The challenge ahead is substantial. Transformers aren’t smartphones—they’re installed for decades and must meet rigorous safety and reliability standards. Utilities move slowly, and convincing them to adopt new technology requires proving not just superior performance, but also long-term dependability.
Yet the potential rewards justify the risk. If Heron Power succeeds, we might look back on this moment as when the electrical grid finally caught up with the digital age. The unglamorous transformer, hidden in plain sight for over a century, could become the cornerstone of the clean energy revolution we desperately need.
Sometimes the most important innovations happen in the most overlooked places. The transformer’s time in the spotlight may have finally arrived.