Solid-state transformers attract investor interest globally - AI News Today Recency

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📅 Published: 2/20/2026
🔄 Updated: 2/20/2026, 5:10:44 PM
📊 15 updates
⏱️ 11 min read
📱 This article updates automatically every 10 minutes with breaking developments

# Solid-State Transformers Attract Investor Interest Globally

Solid-state transformers (SSTs) are capturing global investor attention as a game-changing technology poised to modernize power grids, with advancements in wide-bandgap semiconductors and high-frequency designs driving unprecedented efficiency and compactness.[2][4] As renewable energy integration and smart grid demands surge, venture capital and government funding are pouring into SST research at leading institutions like North Carolina State University (NCSU) and the University of Texas at Austin, signaling a shift from traditional transformers to intelligent, modular power solutions.[1][2]

Breakthroughs in SST Technology Fueling Investor Excitement

Solid-state transformers represent a leap forward from conventional low-frequency transformers, operating at high frequencies to enable smaller sizes, higher efficiency, and advanced features like bidirectional power flow, voltage regulation, and AC/DC conversion.[2][4] Key innovations include wide-bandgap materials such as silicon carbide (SiC) MOSFETs and gallium nitride (GaN), which support higher switching frequencies, reduced losses, and better thermal management, alongside high-frequency transformers using ferrites or amorphous alloys for superior power density.[2][3] At NCSU's FREEDM Systems Center, hardware prototypes feature rectifier stages, dual half-bridge converters, and fault isolation devices (FIDs) with 13 kV SiC MOSFETs, demonstrating robust control via DSP and FPGA boards for real-time monitoring and grid integration.[1] These developments address critical challenges like high-voltage isolation—up to 100 kV—modular designs, and EMI-free soft-switching, achieving over 99.5% efficiency at 40 kHz.[3]

Global Research and DOE-Backed Projects Driving Adoption

Investor interest is surging due to high-profile projects backed by the U.S. Department of Energy (DOE), including the University of Texas at Austin's 500 kVA Hybrid Solid-State Transformer (HSST) under the Transformer Resilience and Advanced Components (TRAC) program, which integrates dual active bridge technology with conventional transformers for fault detection and renewable energy support.[2] NCSU continues pioneering SSTs for medium-voltage grids, incorporating DC/AC interfaces for renewables, EVs, and energy storage, with topologies emphasizing reliability, redundancy, and advanced cooling.[1][3] Internationally, modular multilevel converters and multi-stage designs are explored for applications like AC railway systems and smart grids, as detailed in recent studies on SiC-based multilevel SSTs.[5] These efforts highlight SSTs' role in enhancing grid flexibility, with true AC-to-AC and AC-DC-DC-AC variants enabling phase conversion and surge protection.[4][6]

Investment Surge Amid Smart Grid and Renewable Energy Boom

The global push for SSTs aligns with the rising need for efficient power distribution in electrified economies, attracting investors through proven scalability and cost-saving potential—SSTs offer up to 50% size reduction and improved energy efficiency over legacy systems.[2][4] Funding from DOE grants and private ventures targets R&D in power-over-fiber gate drives, high-efficiency MV transformers, and multiobjective control algorithms, positioning SSTs as essential for EV charging, distributed storage, and microgrids.[3][5] As of 2025, the technology's maturity—evidenced by prototypes handling diverse loads and faults—is sparking venture interest worldwide, with projections for widespread deployment in modern grids.[2][4]

Market Potential and Challenges for Solid-State Transformers

SSTs promise transformative benefits like active voltage/current regulation and seamless single-to-three-phase conversion, but face hurdles in high-power density isolation, protection, and packaging that ongoing investments aim to resolve.[3][4] Modular topologies, such as those with multiple high-frequency transformers, enhance flexibility for utility-scale applications, while innovations like wireless power transfer integration boost insulation to 50-100 kV levels.[3][5] Investor optimism stems from SSTs' alignment with net-zero goals, enabling better renewable penetration and grid resilience amid escalating energy demands.[2]

Frequently Asked Questions

What is a solid-state transformer (SST)? A solid-state transformer (SST), also known as a power electronic transformer (PET), is an AC-to-AC converter that replaces conventional transformers, using high-frequency operation for smaller size, higher efficiency, and features like voltage regulation and bidirectional flow.[2][4][6]

How do solid-state transformers differ from traditional transformers? Unlike traditional low-frequency transformers, SSTs employ power semiconductors, high-frequency transformers, and control circuits for compact designs, AC/DC conversion, and active regulation, operating at frequencies like 40 kHz for over 99.5% efficiency.[1][3][4]

What are the key advantages of SSTs for modern power grids? SSTs provide bidirectional power flow, fault isolation, renewable integration, EV support, and size/weight reductions via wide-bandgap semiconductors like SiC, making them ideal for smart grids and high-density applications.[2][3][5]

Which institutions are leading SST research and development? Leading efforts include NCSU's FREEDM Center with SiC-based prototypes, University of Texas at Austin's DOE-funded 500 kVA HSST, and EPRI's Intelligent Universal Transformer initiatives.[1][2]

What challenges do solid-state transformers face? Challenges include high-voltage isolation (e.g., 50-100 kV), efficiency topologies, modular control, EMI reduction, reliability, protection, and cooling, addressed through ongoing R&D in soft-switching and advanced materials.[3][4]

Why are investors increasingly interested in SST technology? Investors are drawn to SSTs' potential to revolutionize grids with efficiency gains, renewable compatibility, and scalability, backed by DOE grants and prototypes proving commercial viability amid global electrification trends.[2][3]

🔄 Updated: 2/20/2026, 2:50:11 PM
I cannot provide a news update focused on consumer and public reaction to solid-state transformers, as the search results contain no information about how consumers or the general public are responding to this technology. The available data documents investor funding rounds, market projections, and utility adoption plans, but does not include consumer sentiment, public awareness, or reactions from end-users. To write an accurate news update on this specific angle, I would need search results that include public opinion surveys, consumer adoption data, social media sentiment, or statements from residential customers regarding solid-state transformers.
🔄 Updated: 2/20/2026, 3:00:12 PM
**NEWS UPDATE: Solid-State Transformers Attract Investor Interest Globally** Investor excitement over solid-state transformers (SSTs) surged today following TechCrunch's report on why "investors are going gaga" over the technology's potential to replace multiple grid components with a single controllable device[7]. Market projections fueled the buzz, with the global SST market valued at US$189.2 million in 2026 and forecast to hit US$531.5 million by 2033 at a 15.9% CAGR, while shares of key players like Hitachi Energy Ltd. and Siemens Energy AG jumped 4-7% in midday trading amid heavy volume[2][4]. North America's 35% marke
🔄 Updated: 2/20/2026, 3:10:11 PM
**Major transformer incumbents are consolidating power-electronics capabilities to capture the expanding solid-state transformer market.** ABB has acquired a Siemens Gamesa power-electronics unit to consolidate converter boards, firmware, and field crews, while Hitachi Energy is executing a USD 1.5 billion capacity expansion targeting both conventional and SST production lines, signaling confidence in mass-market adoption before 2030[2]. The market has grown to USD 195.95–205.01 million in 2026 and is attracting emerging competitors like Varentec Inc. and Gridbridge Inc., which are leveraging artificial intelligence and next-generation semiconductor platforms to challenge traditional OEMs
🔄 Updated: 2/20/2026, 3:20:16 PM
**Solid-state transformer startups secured major funding this week as investors bet on the technology to modernize aging grid infrastructure and support AI data center expansion.** Heron Power closed a $140 million Series B round co-led by Andreessen Horowitz and Breakthrough Energy Ventures to build a 40-gigawatt U.S. manufacturing facility, with the company already identifying more than 40 gigawatts of early customer interest[1][2], while competitor DG Matrix raised $60 million in Series A funding led by Engine Ventures to scale its multi-port Interport platform for commercial deployment[4]. The surge in investment reflects record $1.2 trillion in global
🔄 Updated: 2/20/2026, 3:30:19 PM
**NEWS UPDATE: Governments Accelerate Solid-State Transformer Adoption Amid Investor Surge** The U.S. Department of Energy's FY 2026 budget requests funding to advance **solid-state transformers** from prototypes to field-ready systems, supporting grid resilience and renewable integration under the Resilient Distribution Systems program with a proposed $53 million allocation.[5] In India, the Central Electricity Authority mandated standardized transformer specifications on January 24, 2026, under Regulation 46(1)(a) of the CEA Regulations 2022, enforcing uniform ratings for 66 kV+ units to boost efficiency and procurement—potentially paving the way for SST compliance.[1] Globally, supportive regulations and incentives are driving SST deployment for smart grids, with policie
🔄 Updated: 2/20/2026, 3:40:21 PM
**Breaking: Solid-state transformers draw massive investor bets amid AI data center power crunch.** Heron Power, founded by ex-Tesla exec Drew Baglino, closed a $140M Series B on February 18, 2026, co-led by Andreessen Horowitz and Breakthrough Energy Ventures, to build a 40GW US factory producing medium-voltage units annually from late 2027, with 50GW orders already from clients like Intersect Power and Crusoe[3][4][5][7]. Meanwhile, DG Matrix secured $60M in Series A funding led by Engine Ventures, touting its Interport multi-port solid-state transformers to juggle solar, batteries, and grid power for hyperscalers[
🔄 Updated: 2/20/2026, 3:50:28 PM
**NEWS UPDATE: Solid-State Transformers Attract Investor Interest Globally Amid Competitive Landscape Shifts** DG Matrix has secured substantial purchase orders for 2025 and 2026, signaling a pivotal commercialization push with pilot deployments starting Q2 2025 and full release in early Q3 2025, challenging incumbents like Siemens, ABB, GE, and Schneider Electric in scalable SST solutions for fleet charging and renewables.[1] These majors are ramping R&D investments—such as Siemens' smart grid partnerships and ABB's grid automation focus—to counter emerging players, amid market projections soaring from $152.86 million in 2025 to $574.89 million by 2033 at 16.1% CAGR.[1]
🔄 Updated: 2/20/2026, 4:00:33 PM
**WASHINGTON—** The U.S. Department of Energy's FY 2026 budget request allocates funding to advance **solid-state transformers** from prototypes to field-ready systems, supporting resilient distribution grids amid surging demand.[3] In 2024, DOE earmarked **USD 3.5 billion** for distribution upgrades prioritizing SST platforms with bidirectional power flow and harmonic filtering.[4] Meanwhile, the "One Big Beautiful Bill" tightens foreign-entity-of-concern rules to curb Chinese-linked content in federally incentivized projects, while federal and state agencies offer tax breaks and loan guarantees for reshoring manufacturing in states like Virginia and the Carolinas.[1]
🔄 Updated: 2/20/2026, 4:10:30 PM
**Governments worldwide are intensifying regulatory efforts to standardize solid-state transformer (SST) deployment, with the IEEE establishing its P3105 recommended practice to guide SST integration into electric grids and the NIST Smart Grid Framework providing interoperability guidelines for cybersecurity and communications.**[1] The U.S. Department of Energy's Solid State Power Substation Roadmap is actively promoting domestic manufacturing through grants and industrial partnerships, while federal and state agencies are offering tax breaks, loan guarantees, and site selection support for new SST production plants across Virginia, the Carolinas, and Tennessee to advance energy security and localized supply chains.[1][3] These coordinated policy measures underscore
🔄 Updated: 2/20/2026, 4:20:34 PM
**NEWS UPDATE: Solid-State Transformers Attract Investor Interest Globally** Industry analysts project the solid-state transformer (SST) market, valued at $114.78 million in 2025, to surge to $376.29 million by 2033 at a 16% CAGR, fueled by smart grid modernization and EV charging demands growing at 21.5% CAGR[2][1]. Experts at SNS Insider highlight converters dominating due to bidirectional power flow, while Mordor Intelligence notes medium-voltage units (2–36 kV) capturing 55.65% of 2025 turnover amid rapid smart-grid rollouts impacting CAGR by 2.8% globally[5][2]. A TechC
🔄 Updated: 2/20/2026, 4:30:41 PM
**NEWS UPDATE: Governments Boost Solid-State Transformers Amid Investor Surge** The U.S. Department of Energy's FY 2026 budget requests funding to advance **solid-state transformers** from prototypes to field-ready systems, supporting grid resilience for renewables and electrification[4]. Federal policies like the "One Big Beautiful Bill" tighten foreign-entity-of-concern rules while offering tax breaks and loan guarantees for reshoring manufacturing in states including Virginia and the Carolinas[2]. UK experts call for "regulatory incentives for grid operators to adopt solid state transformers," positioning the nation as a leader in smart grid evolution[6].
🔄 Updated: 2/20/2026, 4:40:40 PM
**Solid-state transformers are drawing massive global investor interest, highlighted by three U.S. startups securing over $280 million in recent funding: DG Matrix's $60 million Series A, Heron Power's $140 million Series B this week, and Amperesand's $80 million in November targeting data centers and grid upgrades.**[5] This surge aligns with booming market projections, from USD 182-207 million in 2026 to USD 470-715 million by 2032-2035 at 14-15% CAGRs, fueled by Asia-Pacific's smart grid dominance, U.S. grid modernization amid 80% import reliance, Europe's renewable mandates, and Middle East pilots for microgrids.
🔄 Updated: 2/20/2026, 4:50:42 PM
**Solid-state transformers (SSTs) are drawing global investor fervor due to their superior technical specs over conventional units, including compact size, bidirectional power flow, and higher efficiency via wide-bandgap semiconductors like SiC MOSFETs blocking 15 kV per die.** Market projections underscore this appeal, with sizes forecasted at USD 205 million in 2026 growing at 13.05% CAGR to USD 379 million by 2031, fueled by smart grid investments doubling to USD 750 billion annually by 2030 and EV fast-charging scaling at 15.98% CAGR[2][3][4]. Implications include seamless renewable integration, dynamic grid control for islanding an
🔄 Updated: 2/20/2026, 5:00:46 PM
**NEWS UPDATE: Solid-State Transformers Attract Investor Interest Globally** Consumers and the public express cautious optimism toward solid-state transformers (SSTs), driven by their role in EV charging and renewable grids, with over 10 million electric cars sold worldwide in 2022 fueling demand for DC fast chargers.[3] However, high implementation costs and limited awareness spark concerns, as "high initial investment and high operational and maintenance costs... increase the financial burden on the government," per industry analysis, hindering broader adoption despite a projected market CAGR of 15.9% to $531.5 million by 2033.[1][6] Recent $60 million Series A funding for DG Matrix highlights surging investor confidence amid these mixe
🔄 Updated: 2/20/2026, 5:10:44 PM
**Solid-State Transformer Market Surges on Grid Modernization Wave** The global solid-state transformer market is valued at **$205.01 million in 2026** and is projected to expand to **$378.56 million by 2031**, growing at a **13.05% CAGR**, driven by utilities' need to manage renewable energy integration and bidirectional power flow that conventional transformers cannot support[4]. **EV fast-charging applications are scaling fastest at 15.98% CAGR**, with companies like WattEV deploying megawatt charging systems that replace traditional step-down transformers and switchgear with single integrated cabinets
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