Capalo AI is expanding its AI-powered virtual power plant across Europe, optimising and trading battery energy storage to support grid stability and renewable energy integration as electricity systems face growing complexity.
Finnish sustainable technology company Capalo AI has completed an €11 million Series A funding round to support the expansion of its AI-powered virtual power plant across Europe and to scale the optimisation and trading of battery energy storage systems. The round was led by Heartcore Capital, with participation from Tesi (Finnish Industry Investment), existing investors VentureFriends, PROfounders, Inventure, and Innovestor, as well as several family offices.
Founded in 2022 by Henri Taskinen, Riku Kukkonen, Teemu Lappalainen, and Eerik Jauhiainen, Capalo AI develops software that maximises the value of battery energy storage systems across electricity markets. The company combines high-quality forecasting data with AI-based models to optimise the trading and operation of energy storage assets.
The rising share of weather-dependent energy sources such as wind and solar, together with increasing electricity demand from data centres and electric vehicles, is contributing to greater grid volatility and higher system costs.
To address these challenges, Capalo AI aggregates large-scale battery assets and renewable energy production from multiple sites into a single virtual power plant, enabling real-time optimisation and trading across electricity markets while supporting grid balance and asset performance.
According to Henri Taskinen, Co-founder and CEO of Capalo AI, 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.
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,
Taskinen said.
Following the funding round, Capalo AI plans to expand its international operations and further scale the optimisation and trading of battery energy storage systems, including both stand-alone assets and those co-located with wind or solar generation.
The company is currently active in Finland, Sweden, Latvia, and Lithuania, and plans to enter additional European markets in 2026 while continuing to grow its client base.