Drew Baglino, a former top executive at Tesla, has launched a new startup focused on developing innovative solid-state transformers for the electric grid, as reported by Axios in a recent article.

The startup, known as Heron Power, is currently in the process of raising capital, with a target range of $30 million to $50 million for its Series A funding round, according to the report. Capricorn Investment Group is expected to lead this investment round.

Baglino’s tenure at Tesla spanned many years, beginning in 2006, two years prior to Elon Musk’s appointment as CEO. During his time at the company, he played a crucial role in designing the powertrain for the first Model S and led the engineering team for Tesla’s battery storage products, eventually becoming senior vice president of powertrain and energy.

Baglino’s departure from Tesla occurred in April of last year, coinciding with the company’s decision to lay off 10% of its workforce, as reported at the time.

With the establishment of Heron Power, Baglino is addressing a component of the electrical grid that has seen minimal innovation over the past century. Traditional transformers have remained largely unchanged and are now predominantly manufactured overseas, having become a commoditized product.

In contrast, solid-state transformers offer enhanced capabilities compared to their traditional counterparts. They are better equipped to regulate voltage dips originating from solar panels and wind turbines, are more compact, can rapidly switch between different power sources, and can be actively managed to enhance grid stability.

Heron Power is not the only startup seeking to revolutionize the transformer market. Another company, Singapore-based Amperesand, is also in the process of securing Series A funding after completing a $12.5 million seed funding round in early 2024. Notably, Amperesand’s executive team also includes alumni from Tesla.