Heron Power Raises $38M to Modernize Grid for AI-Era with Solid-State Tech
Heron Power, an energy infrastructure company focused on modernizing the electricity grid, has raised $38 million in a Series A funding round.
Led by Capricorn Investment Group’s Technology Impact Fund, the round also saw participation from Breakthrough Energy Ventures, Energy Impact Partners, Gigascale Capital, Powerhouse Ventures, Valor Equity Partners, and prominent figures such as Tesla co-founder JB Straubel and former Tesla CFO Zach Kirkhorn. With this investment, Heron Power’s total funding raised to date has reached $43 million.
Modernizing the Grid with Solid-State Transformers
Heron Power is developing cutting-edge industrial power electronics designed for the 21st-century grid, providing scalable, reliable, and software-integrated infrastructure solutions.
The company’s flagship product, the Heron Link, is a solid-state transformer that replaces traditional, outdated medium-voltage transformers (MVTs) and power converters. The Heron Link connects directly to medium voltage, offering improved efficiency, lower costs, and enhanced grid stability, which is critical as energy demand continues to rise.
The Heron Link’s modular design and use of wide-bandgap semiconductors enable high power density and ease of maintenance, addressing key grid challenges such as the inability to regulate voltage or frequency, slow response times, and the difficulty in adapting to dynamic grid conditions.
With integrated voltage and frequency regulation, the Heron Link provides enhanced grid stability, which can help prevent cascading outages like the one in Spain in early 2025.
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Meeting the Growing Demand for Clean Energy
The renewable energy sector has grown rapidly in recent years, with technologies like solar, batteries, and data centers expanding from a few gigawatts in 2014 to over 500 gigawatts in 2024. However, the infrastructure connecting these technologies to the grid has remained largely unchanged for a century.
Current transformers are massive, inefficient, and incapable of meeting the demands of today’s dynamic grid, which has resulted in long lead times, high prices, and supply shortages.
Drew Baglino, Founder and CEO of Heron Power, said, "We’re at an inflection point where clean, abundant energy is ready to come online—but grid interconnection challenges hold us back.”
He added, “Heron Power aims to bridge that gap. With electrification on a path to triple electricity demand and AI’s exponential need for power, we're moving fast on the opportunity to modernize the grid with more capable hardware.”
Expanding Production and Partnerships
Heron Power plans to manufacture the Heron Link in the US, with initial pilot installations slated for 2026 and partner installations in early 2027. The company has already established partnerships with major energy and data center developers and has a highly experienced team that has collectively designed and deployed over 80 gigawatts of grid-connected power electronics.
