Capalo AI – bringing efficiency to electricity markets with AI

Why?

Variable and difficult-to-predict renewable energy production has created new challenges for electricity markets. In Finland, for example, the rapid growth of wind power often produces electricity when demand is low, which has at times pushed electricity prices into negative territory. Conversely, during calm and cold winter days electricity generation can fall short of demand, driving wholesale electricity prices extremely high.

Balancing electricity production and consumption requires energy storage systems such as battery energy storage systems. These systems store electricity when it is abundant and discharge it when needed. However, balancing the power system requires real-time, ultra-fast optimisation and trading decisions.

Capalo AI has grown into Finland’s largest company optimising battery systems with artificial intelligence. Its operations help the transmission system operator (TSO) maintain the balance of the electricity system.

What and how?

Capalo AI has developed an algorithm-based optimisation platform called Capalo Zeus VPP. It connects separate battery energy storage systems and renewable energy production from solar and wind power plants into a single managed entity, a virtual power plant. The platform addresses a critical question: when should batteries be charged and discharged to best support the electricity system while also maximising asset value for investors and power producers.

Capalo AI’s artificial intelligence processes all relevant variables in real time, including weather forecasts, market prices, consumption patterns and the technical lifecycle of battery systems. The platform also provides power producers with direct access to electricity markets in multiple countries, AI-optimised trading across all market platforms, as well as balance responsible party (BRP) and balancing service provider (BSP) services. The solution helps balance supply and demand across electricity markets while maximising the wholesale value generated by energy storage and renewable assets.

Growth and internationalisation

Capalo AI is a rapidly growing and internationalising energy tech company. From Finland, the company has already expanded to electricity markets in Sweden, Lithuania, Latvia, Poland and Bulgaria. This year it is entering the electricity markets of, Romania, Greece, Spain and Portugal. What these regions have in common is significant renewable energy production and rapidly growing battery storage capacity.

In 2025, the total contracted battery capacity managed by the company exceeded one gigawatt. The company expects this contracted capacity to multiply during 2026. For example, the electricity markets in Spain and Greece offer strong growth potential due to their large solar power capacity and related storage needs. Meanwhile, several gigawatts of battery energy storage capacity are under development in Romania and Bulgaria.

The importance of venture capital

In February 2026, Capalo AI announced an EUR 11 million Series A funding round led by the European investor Heartcore Capital. In addition to Tesi, which made its first investment in the company, the round included VentureFriends, Innovestor, PROfounders and Inventure. The funding will accelerate Capalo AI’s international expansion and the scaling of optimisation and trading of battery energy storage systems across European electricity markets.

Tesi’s goal is to accelerate the development of innovation ecosystems in strategically important thematic areas and to support sustainable growth and a more resilient society. Through co-investments with private investors, Tesi helps build and scale new high-technology companies internationally using domestic capital. Capalo AI is a company that embodies all these points.

General information

Capalo AI is a technology company founded in Kuopio, Finland, in 2022. Its founders – Henri Taskinen, Riku Kukkonen, Eerik Jauhiainen and Teemu Lappalainen – have backgrounds in computational physics, computer science and artificial intelligence.

The company has rapidly grown into one of the leading providers of battery storage trading and optimisation services in Northern Europe. Its strength lies in exceptionally advanced algorithmic trading and optimisation models and the ability to manage very large battery and renewable asset portfolios across multiple electricity markets. The company’s headquarters are in Helsinki and it employs more than 60 specialists.