DC power is staging a quiet comeback, as Estonian DeepTech spin-off DCR Technologies is building the bridge between today’s AC infrastructure and tomorrow’s direct current grids.

The current discussion about power grids has shifted heavily towards utilising renewables, adding new storage capacity, or simply lowering consumer prices. But there’s a bigger, more fundamental question lurking around. And now there might be a breakthrough to answer it, coming from Estonia. A TalTech DeepTech spin-off is developing power electronics technology that could make today’s electrical devices compatible with the direct current (DC) grids of the future – without replacing the hardware already in place, writes Kätliin Gertrud Vilbo, Technology Transfer Office.

DCR Technologies, founded out of research at Tallinn University of Technology (TalTech), is targeting one of the quieter inefficiencies in the modern energy system. Most consumer technology – solar panels, electric vehicles, batteries, electronics – already runs on DC. Yet homes and buildings still receive power as alternating current (AC), meaning a constant back-and-forth conversion is happening inside virtually every device. The energy lost in that process adds up.

The broader transition, however, is caught in a familiar deadlock. Grid operators will not invest in DC infrastructure without DC-compatible devices already in the market; device manufacturers will not redesign products without DC infrastructure in place. Neither side moves first – and every AC asset installed in the meantime becomes a costly retrofit later, estimated at €30,000–€60,000 per commercial site.

“Today, there are many unnecessary conversions happening within the system, and our technology helps reduce them,” said co-founder Kristjan Lind.

DCR Technologies’ platform allows AC-powered devices to operate in DC grids, targeting applications including EV chargers, solar energy systems, energy routers, and DC microgrids. The company says the technology adds roughly 2–3% to the total cost of electrical and charging systems – a modest outlay against the cost of large-scale retrofitting later. Its universal DC-ready solar converter, for instance, claims peak DC efficiency of 99.2% and an additional 15–36 MWh per year per commercial site. “If DC grids become widely adopted, charging electric vehicles will not be possible without solutions like these,” said CEO and co-founder Oleksandr Husev, who is also a senior researcher at TalTech.

From TalTech to the commercial application

The idea grew out of TalTech research projects beginning in 2019. Husev, whose former PhD students now make up much of the core team, said the commercial ambition was there from the start. “I was thinking not only about the technologies needed tomorrow, but also the day after tomorrow,” he said. “Even in the original project proposal, I wrote that the goal could eventually be the commercialisation of this technology.”

The path was not linear. An early pivot away from wireless charging for electric scooters – where the market proved unready – led the team toward DC-DC converters, where commercial interest was stronger. Lind, whose background is in scaling hardware companies, joined as co-founder to help bridge the gap between research and commercial viability.

The technology is built on four patents originating at TalTech. To date, DCR Technologies has secured over €1M in research funding, with grants accounting for more than half of its initial financial plan – a structure Lind says allows the team to keep developing without diluting equity prematurely.

Market signals

The company is currently between the prototype and pilot stage, but industry interest is already forming. DCR Technologies has received letters of intent from several major players, including Schneider Electric. “The product is not yet for sale, but this shows that the problem exists and the market is waiting for a solution,” said Lind.

The four markets DCR Technologies is targeting – PV inverters, solar microinverters, EV onboard chargers, and DC microgrids – are collectively projected to grow from around $30 billion today to over $100 billion by 2030.

The Netherlands is already developing DC-related standards, and Estonia is moving in a similar direction. Lind frames the company’s pitch like this: “Customers do not need to gamble on when DC grids will arrive. They can invest today and already be prepared for the future.”

DCR Technologies is backed by Finnish venture capital fund Nordic Science Investments, which focuses on science-based companies. The fund’s partner, Mart Maasik, helped structure the agreements between TalTech and the spin-off in a way designed to protect the long-term interests of both the university and the company. A new investment round is planned for the end of the year. “At this point, the question is no longer only about the technology itself, but about how to bring the solution to market and scale its adoption,” said Lind.

Are you interested in trading with Estonia? Enterprise Estonia is providing sourcing services for foreign enterprises. Contact Estonian export advisors or use our free e-consulting service to start trade with Estonia.