Finnish EnergyTech Capalo AI Raises €11M for Battery Storage

Addressing Europe’s Energy Storage Challenge

Finnish sustainable technology company Capalo AI today announces an €11 million Series A funding round to accelerate the rollout of its AI-powered virtual power plant across Europe and scale the optimisation and trading of battery energy storage systems. The round was led by Heartcore Capital, with participation from Tesi (Finnish Industry Investment) and full re-participation from existing investors VentureFriends, PROfounders, Inventure, and Innovestor, as well as a few family offices.

Capalo AI operates at the forefront of Europe’s rapidly expanding battery storage market, a cornerstone of the future energy system. The increasing share of weather-dependent energy sources such as wind and solar, combined with rising electricity demand from data centres and electric vehicles, is driving greater grid volatility and higher system costs.

Capalo AI connects large-scale batteries and renewable energy production from multiple locations into a single virtual power plant, using highly accurate forecasting and advanced AI models to optimise and trade energy storage across electricity markets in real time, balancing supply and demand while maximising asset value for investors.

“The global clean energy transition is moving forward at an unstoppable pace, with solar power leading the way,” said Henri Taskinen, Co-founder and CEO of Capalo AI. “However, the electricity system is facing increasing challenges to install all the new capacity and maintain resilience. 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.”

Founded in 2022, Capalo AI has rapidly grown into one of the leaders in Europe’s battery storage trading and optimisation market. In 2025, Capalo AI’s total contracted battery capacity exceeded 1 GW, representing more than a fivefold increase in less than 12 months. The company also grew its revenue fivefold and doubled the team size.

With the new €11 million funding, Capalo AI is accelerating its international expansion and scaling of optimisation and trading of battery energy storage systems, both stand-alone and co-located with wind or solar farms. Currently active in Finland, Sweden, Latvia, and Lithuania, the company plans to expand into multiple additional European markets in 2026 and to significantly grow its client portfolio. Capalo AI already works with major infrastructure investors and independent power producers, including FRV (Fotowatio Renewable Ventures), RPC (Renewable Power Capital), Ardian-owned eNordic Evergreen, and Swiss battery energy storage system investor MW Storage.

We’re working hard to maximise our scale to become Europe’s leading battery storage and renewable asset optimiser and trader. With our AI-driven virtual power plant, we can deliver greater efficiency than grid expansion alone, replace costly grid infrastructure investments, and maximise the value of battery storage while strengthening Europe’s energy resilience.

says Taskinen.

European industrial competitiveness depends on stable, low-cost power, making batteries the ultimate linchpin of the energy transition. Capalo AI is building the critical digital infrastructure to operate and optimise these assets at scale.

The team’s ability to translate technical depth into a repeatable monetisation engine positions them as the primary coordination layer for the next generation of European energy markets.

says Paulina Koschitz, Principal at Heartcore Capital.

The demand for battery energy storage systems continues to grow alongside the clean transition. Riding this trend, Capalo has rapidly expanded in recent years and achieved a notable position in its current target markets.

The Capalo team has done excellent work, and we are excited to collaborate with the company and support its international growth.

says Jan-Patrick Haikkola, Investment Manager at Tesi.