Drew Baglino's New Startup: Revolutionizing Electrical Transformers

Drew Baglino Launches Heron Power, a Solid-State Transformer Startup

Drew Baglino, a former executive from Tesla, has initiated a new venture focused on the development of solid-state transformers designed for modernization of the electric grid. This information was recently reported by Axios.

Heron Power's Funding Round

Heron Power is currently seeking to secure between $30 million and $50 million in a Series A funding round. Capricorn Investment Group is anticipated to spearhead this investment phase, as indicated in the report.

Baglino's Tenure at Tesla

Baglino’s association with Tesla spanned a considerable period, beginning in 2006. This was two years prior to Elon Musk assuming the role of CEO.

Throughout his time at Tesla, he progressed through various positions. He was instrumental in the design of the powertrain for the initial Model S vehicle.

Furthermore, he oversaw engineering efforts related to Tesla’s battery storage solutions. Eventually, he attained the position of senior vice president of powertrain and energy.

Departure from Tesla

Baglino’s departure from Tesla occurred in April of the previous year. This coincided with a company-wide workforce reduction affecting 10% of Tesla’s employees.

Addressing Grid Infrastructure Challenges

With the establishment of Heron Power, Baglino is addressing a segment of the electrical grid that has experienced limited innovation for over a century. Traditional transformers have remained largely unchanged during this timeframe.

Due to commoditization, the majority of transformer production has shifted to overseas manufacturers.

Advantages of Solid-State Transformers

Solid-state transformers offer enhanced capabilities compared to conventional transformers. They effectively manage voltage fluctuations originating from renewable sources like solar and wind power.

Compact design and rapid switching between power sources are also key benefits. Active management capabilities contribute to improved grid stability.

Competition in the Transformer Market

Heron Power is not alone in its ambition to disrupt the transformer market. Amperesand, a Singapore-based company, is also actively raising a Series A round.

Amperesand recently completed a $12.5 million seed funding round in early 2024. Notably, Amperesand’s leadership team also includes former Tesla employees.

Both companies represent a growing trend of innovation aimed at modernizing critical grid infrastructure.