Kuopio-based energy technology startup Capalo AI has raised €500,000 in a pre-seed funding round led by Innovestor Tech Fund with participation from Inventure. Capalo AI plans to use the funds to further develop its virtual power plant (VPP) and multi-market optimization AI, as well as expand its team with talented mathematicians and cloud services experts.
As renewable energy sources are growing in popularity and adoption worldwide, the role of energy storage and flexible demand is key in the green transition. For the power grid to function, electricity consumption and production must be in balance at all times.
Renewable energy production is volatile due to weather conditions, as it is impossible to predict power generation with complete accuracy. Capalo AI uses advanced AI to optimize the use of flexible energy assets, such as energy storage systems and electric vehicle (EV) charging stations. Capalo AI’s technology optimizes the flexibility of the energy grid to adapt to fluctuations in production and demand, enabling the rapid expansion of the deployment of weather-dependent renewable energy sources.
This benefits the national grid and Capalo AI’s customers, as optimal bidding strategies better maintain grid balance and stacking different revenue streams maximizes revenue from customer assets.
“Our solutions maximize value for our customers while accelerating the green transition. Moreover, multi-market optimization enables national grids to maintain a stable power frequency, which means less need for backup power plants that primarily use fossil fuels to generate electricity, resulting in a reduction in carbon emissions,” said Henri Taskinen, CEO and co-founder of Capalo AI.
Founded in 2022, Capalo AI is a Finnish investment company and has already partnered with Exilion Tuuli, one of Finland’s largest wind power developers. The company currently owns and operates 13 wind farms and one 6.6MWh battery storage across Finland and plans to continue investing in increasing renewable energy production in Finland. Capalo AI has received significant support from prospective customers across the Nordics and is expected to start cooperation with its first Swedish partner shortly.
“We are pleased to be one of Capalo AI’s first clients and to be able to take advantage of their AI-powered optimization services. Capalo AI’s platform solutions have enabled us to significantly improve the profitability of flexible assets in complex operating environments,” commented Tommi Riski, Investment Manager at Exilion.
Both Innovestor Techfund and Inventure see a lot of potential in investing in AI-powered energy asset optimization. For example, windy weather keeps renewable energy prices low, and therefore the economic profits low, meaning wind power is no longer a very profitable investment option. For this reason, batteries are being built next to turbines to allow them to release energy more evenly into the grid.
“With their great execution, solid educational background and passion to bridge the gap between today’s grid challenges and the green aspirations of the future, the Capalo AI team really impressed us. Such impressive results in a short period of time give us confidence that the team is on the cusp of achieving something great. Our investment in Capalo AI is not just a financial decision, it represents a commitment to a brighter and more sustainable future. Together we are setting the pace, not just participants in the green transition,” added Petri Laine, Partner at Innovestor Venture Capital.
According to the startup, there are around 1,400 wind farms in Finland alone, with this number set to increase significantly in the coming years. “To enable new renewable energy capacity to come online, all available flexibility in the power grid is needed. Moreover, there is a lot of untapped potential flexibility in many areas, such as EV charging. Our platform unlocks these new revenue streams from underutilized assets and accelerates the green transition at the same time,” Taskinen concludes.
