Capalo AI raises €11M to expand battery storage optimisation

Finnish Climate Tech Pioneer Capalo AI Secures €11 Million to Revolutionise Europe’s Energy Landscape with AI-Powered Virtual Power Plants

In a bold move that underscores Europe’s accelerating pivot toward intelligent energy solutions, Helsinki-based climate tech innovator Capalo AI has closed an impressive €11 million Series A funding round. The investment will fuel the company’s ambitious expansion of its AI-driven virtual power plant (VPP) technology across the continent, while scaling the optimisation and trading of battery energy storage systems (BESS) at an unprecedented pace.

Leading the round is Heartcore Capital, the renowned European venture firm known for backing transformative deep tech companies. They are joined by Tesi (Finnish Industry Investment), alongside a coalition of existing investors including VentureFriends, PROfounders, Inventure, and Innovestor, plus several prominent family offices. This diverse investor base signals strong confidence in Capalo AI’s vision to tackle one of the most pressing challenges of our time: building a resilient, sustainable electricity grid in the face of volatile renewable energy sources.

Capalo AI was founded in 2022 by a quartet of visionary engineers and entrepreneurs: Henri Taskinen, Riku Kukkonen, Teemu Lappalainen, and Eerik Jauhiainen. Their mission? To unlock the full potential of battery energy storage systems by deploying cutting-edge software that intelligently maximises value across electricity markets. By fusing high-quality forecasting data with advanced AI models, Capalo AI enables real-time optimisation and trading of energy storage assets, transforming them from passive infrastructure into dynamic, grid-stabilising powerhouses.

The timing couldn’t be more critical. As Europe races to decarbonise its electricity supply, the share of weather-dependent energy sources like wind and solar is surging. Simultaneously, electricity demand is skyrocketing, driven by the proliferation of data centres and the rapid adoption of electric vehicles. This perfect storm is creating unprecedented volatility in power grids, driving up system costs, and threatening reliability.

Enter Capalo AI’s innovative solution: aggregating large-scale battery assets and renewable energy production from multiple sites into a single, intelligent virtual power plant. This approach allows for real-time optimisation and trading across electricity markets, while simultaneously supporting grid balance and enhancing asset performance. In essence, Capalo AI is turning the complexity of modern energy systems into a competitive advantage.

Henri Taskinen, Co-founder and CEO of Capalo AI, paints a vivid picture of the challenge and opportunity ahead. “The global transition to clean energy continues to accelerate, with solar power playing a central role, while electricity systems face growing pressure to integrate new capacity and maintain reliability,” he explains. “Infrastructure alone cannot solve this challenge—intelligence is essential. Intelligently orchestrated battery storage is now critical to accelerating the renewable energy ramp-up and building a pathway toward a truly sustainable energy system.”

With the fresh capital injection, Capalo AI is poised to scale its operations internationally and further optimise the trading of battery energy storage systems, including both stand-alone assets and those co-located with wind or solar generation. The company is already active in Finland, Sweden, Latvia, and Lithuania, and has its sights set on entering additional European markets in 2026, all while continuing to expand its growing client base.

This latest funding round not only validates Capalo AI’s pioneering approach but also signals a broader shift in the energy sector: the recognition that software and AI are just as critical as hardware in the race to a sustainable future. As Europe’s energy landscape becomes increasingly complex, companies like Capalo AI are stepping up to provide the intelligence layer that will enable the seamless integration of renewables, the stabilisation of grids, and the acceleration of the clean energy transition.

With its sights set on European domination and a war chest to match, Capalo AI is well-positioned to become a cornerstone of the continent’s sustainable energy future. The next few years will be crucial as the company scales its technology, enters new markets, and helps Europe navigate the complexities of a renewable-powered grid. One thing is certain: the future of energy is intelligent, and Capalo AI is leading the charge.

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