Exclusive: Why investors are going gaga over solid-state transformers | TechCrunch

"It's no secret that the electrical grid is aging, but one part stands out from the rest. Transformers haven't changed much since Thomas Edison made his first light bulb. Now, a string of startups are working to modernize the transformer, replacing it with modern power electronics that promise to give grid operators more control over how and where electricity flows."

"Three startups recently raised sizable rounds to scale up production of their solid-state transformer technologies. This week, DG Matrix raised a $60 million Series A and Heron Power raised $140 million in a Series B round. In November, Amperesand raised $80 million to chase after the burgeoning data center market. Existing transformers are reliable and efficient, but that's about it."

""An old-school steel, copper, and oil transformer doesn't have any monitoring, doesn't have any control," Drew Baglino, founder and CEO of Heron Power, told TechCrunch. In instances where electricity surges or a power plant trips offline, that can be a liability. The devices can incorporate power from a range of difference sources - including traditional power plants, renewables, and batteries - and transform that electricity into either alternating current (AC) or direct current (DC) at a number of different voltages,"

Solid-state transformers use modern power electronics to replace traditional copper, iron, and oil transformers, enabling active monitoring and control of electricity flow. Startups are scaling production, backed by recent funding rounds, to deploy these devices at grid and data center scales. Solid-state units can accept inputs from plants, renewables, and batteries and output AC or DC at multiple voltages, consolidating several functions into one device. Existing transformers are reliable but passive and single-purpose, creating vulnerabilities during surges or generator trips. Solid-state transformers offer smaller footprints and finer control, appealing to data centers and aging grid infrastructure.

Read at TechCrunch