Kuopio-based energy tech startup Capalo AI has raised €500k in a pre-seed funding round led by Innovestor Tech Fund, with Inventure also participating. Capalo AI will use the funding to further develop its virtual power plant (VPP) and multi-market optimization AI, as well as scale up its team with talented mathematicians and cloud service professionals.
With the popularity and commissioning of renewable energy sources rising globally, the role of energy storage and flexible demand will be crucial in the green transition. The consumption and production of electricity have to be balanced at all times for a functioning grid.
Weather conditions make renewable energy production volatile, as it is never possible to completely accurately forecast how much electricity can be produced. Using advanced AI, Capalo AI can optimize the usage of flexible energy assets, such as energy storage systems and electric vehicle (EV) charging stations. Capalo AI’s technology allows the commissioning of weather-dependent renewable energy sources to grow rapidly by optimizing the flexibility of the energy grid to adjust to production and demand fluctuations.
This benefits national grids and Capalo AI’s customers, as the optimal bidding strategies maintain grid balance better and maximize the revenues of customers’ assets by stacking different revenue streams.
“Our solution simultaneously maximizes the value for our customers and accelerates the green transition. In addition, with multi-market optimization, national grids are able to sustain a steady electricity frequency. This means less of a need for reserve power plants that mostly use fossil fuels to produce electricity, which then leads to less carbon dioxide emissions,” said Henri Taskinen, CEO and Co-founder of Capalo AI.
Founded in 2022, Capalo AI is already working with Exilion Tuuli, a Finnish investment company and one of the largest wind energy producers in Finland. The company currently owns and operates thirteen wind farms around Finland and one 6,6 MWh battery storage and intends to continue to invest in increasing renewable energy production in Finland. Capalo AI has gotten significant traction in the whole Nordic area from future customers, and the company will soon start cooperating with its first Swedish partner.
“As one of Capalo AI’s first customers, we are happy to use AI-powered optimization services. With Capalo AI’s platform solution, we have managed to significantly increase the profitability of flexible assets in a complex operating environment,” commented Tommi Riski, Investment Manager at Exilion.
Both Innovestor Techfund and Inventure see numerous possibilities in investing in AI-powered energy asset optimization. For example, in windy weather, the prices of renewable energy are low, and therefore, its financial benefit remains low, i.e., wind power becomes a less lucrative investment option. This has led to the construction of batteries next to the turbines, which enables the energy to be discharged into the grid more evenly.
“Armed with an excellent can-do attitude, robust educational backgrounds, and a passion for bridging the gaps between today’s grid challenges and tomorrow’s green aspirations, the team at Capalo AI truly impressed us. Having achieved such impressive results in a short time, we’re convinced the team is on the brink of something remarkable. Our investment in Capalo AI is not just a financial decision; it signifies our commitment to a brighter, sustainable future. Together, we’re not merely participants in the green transition; we’re setting the pace,” added Petri Laine, Partner at Innovestor Venture Capital.
According to the startup, there are around 1,400 wind power plants just in Finland, and substantially more on the horizon. “To enable the commissioning of new renewable capacity, we need all the available flexibility on the grid. Furthermore, there is a lot of untapped potential flexibility in many sectors, for example, on the EV charging side. Our platform taps into these new revenue streams for unutilized assets and simultaneously accelerates the green transition,” Taskinen concluded.
Read the orginal article: https://www.eu-startups.com/2023/10/finnish-energy-tech-startup-capalo-ai-raises-e500k-to-make-energy-storage-investments-more-desirable/
