Power Electronics Built New Inverter Plant in Houston
The facility joins a wave of domestic manufacturing expansion aimed at meeting surging electricity demand from data centers.
Updated on Sept. 25, 2026 in Data Centers
Live Poll
Do you believe domestic manufacturing of energy components will lead to lower prices for energy consumers?
Power Electronics has initiated construction of an automated inverter production factory in Houston to scale up its capacity. Simultaneously, Heron Power announced it will pilot its integrated conversion units at an RWE renewable energy project in Texas.
Why it matters
Rising electricity consumption in data center markets is driving a strategic push for domestic power conversion supply chains. These manufacturing efforts aim to secure reliable hardware for large-scale grid and battery integration.
Heron Link hardware integrates bidirectional inverters with solid-state transformers, achieving 98.6% DC-to-medium-voltage AC conversion efficiency. The units replace separate low-voltage inverters and 60Hz transformers, with RWE testing the technology at a 249MW installation.
The players
Power Electronics
A global manufacturer specializing in solar inverters, energy storage systems, and motor drives for industrial grids.
Heron Power
A power electronics firm developing integrated conversion hardware that replaces traditional transformers.
RWE
A major energy utility operating over 13GW of renewable and battery assets across 27 US states.
The details
The Heron Link system uses solid-state transformers—power electronic circuits that replace traditional heavy magnetic transformers—to convert DC electricity directly to medium-voltage AC for the grid. By eliminating the need for bulky, separate low-voltage inverters and magnetic transformers, the design streamlines BESS (battery energy storage system) installation architecture. Power Electronics' new Houston site will automate the manufacturing of these components to support the growing US domestic supply chain.
Timeline
2025: ABB completed its acquisition of Gamesa Electric.
February 2026: Heron Power initiated two funding rounds totaling US$200 million.
September 21, 2026: Heron Power formally announced the RWE pilot project.
Late 2027: Heron Power targets 40GW of annual production capacity.
The Tech Race
The transition to integrated, solid-state conversion units represents a shift away from traditional, multi-component grid infrastructure. This race to standardize domestic hardware follows the momentum of 2026 industry discussions on solid-state transformers, which promise higher density and efficiency.
Renewable energy and BESS operators in Texas will see a new conversion architecture capable of 5MW per unit during the RWE pilot. Future deployment of these units remains dependent on the success of the current installation and potential subsequent order volumes from RWE.
The takeaway
The move toward automated domestic production of power conversion hardware signals an industry-wide effort to reduce reliance on legacy transformer designs. Watch for RWE's operational results from the Pyron Wind Farm project to determine the viability of Heron Link units for utility-scale deployment.
Further reading
For broader context on how shifting grid demands are shaping local infrastructure, see our latest coverage in Data Centers.
Live Poll
Do you believe domestic manufacturing of energy components will lead to lower prices for energy consumers?
