Heron Power's $100M Factory to Boost US Grid: Implications for ASEAN

A New Era for Grid Equipment in the US and Beyond \\[Heron Power](https://www.interestingengineering.com/energy/heron-power-grid-technology-startup) is set to invest over $100 million in a former warehouse in Morgan Hill, California, transforming it into a state-of-the-art factory for advanced grid equipment. This facility, expected to commence production by late 2027, will manufacture the Heron Link, a 5-megawatt medium-voltage power conversion system designed for large energy projects and data centers. The company aims to produce up to 10,000 units annually, representing more than 40 gigawatts of annual capacity, which is a significant portion of the new generating capacity added to the US grid in 2025. The project is also anticipated to create over 600 jobs in manufacturing, engineering, and operations. \\[The US grid is facing growing demand from renewable energy, battery storage, electric vehicles, and large data centers.](https://www.interestingengineering.com/energy/heron-power-grid-technology-startup) However, much of the current grid infrastructure relies on older hardware and imported components. Heron Link is designed to replace several pieces of conventional grid equipment with a single modular system, using software-controlled semiconductors to manage power conversion. This technology can potentially improve efficiency and reduce the physical footprint of grid infrastructure, allowing renewable energy, battery storage, and data center projects to connect directly to medium-voltage transmission without a transformer. \\### Implications for ASEAN Factories \\[The investment in domestic production of grid equipment by Heron Power highlights a global trend towards modernizing and localizing critical infrastructure.](https://www.interestingengineering.com/energy/heron-power-grid-technology-startup) For factories in Thailand, Vietnam, Indonesia, and Malaysia, this development could mean several things. First, it underscores the importance of investing in advanced grid technologies to support the growing demand for renewable energy and other high-load applications. Second, it may inspire similar initiatives in ASEAN countries, where there is a need to upgrade and expand grid infrastructure. Third, it could lead to increased competition and innovation in the region, as local manufacturers strive to develop and produce their own advanced grid equipment. \\### Key Takeaways for Factory Buyers \\[For factory buyers in ASEAN, the key takeaway is the need to stay ahead of the curve in terms of grid technology.](https://www.interestingengineering.com/energy/heron-power-grid-technology-startup) Investing in modern, efficient, and locally produced grid equipment can help ensure that your operations are not only reliable but also sustainable. As the region continues to grow and adopt more renewable energy sources, having a robust and flexible grid infrastructure will be crucial. Additionally, keeping an eye on global trends and innovations, such as those being developed by Heron Power, can provide valuable insights and opportunities for collaboration and improvement. \\In conclusion, Heron Power's new factory in California is not just a significant step for the US grid; it also serves as a model for what can be achieved in other regions, including ASEAN. By embracing advanced grid technologies and supporting local manufacturing, ASEAN factories can better position themselves for the future, ensuring they remain competitive and resilient in an increasingly complex and dynamic energy landscape.