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Capalo AI’s Advanced Optimization for Market Flexibility

Capalo AI will deploy its proprietary Capalo Zeus Virtual Power Plant (VPP) technology to trade the battery in multiple Swedish ancillary markets in parallel with the Nord Pool wholesale exchanges. Capalo Zeus VPP leverages AI-driven optimization to dynamically allocate the battery’s capacity across diVerent revenue opportunities, ensuring the highest returns while adapting to market conditions and physical on-site constraints in real-time. This flexibility allows the system to mitigate market saturation risks and optimize revenue generation across a spectrum of market segments.

Executive Perspectives on the Partnership

“This collaboration with Capalo AI enhances our ability to deliver commercially and technically optimized energy storage solutions,” said Fredrik Lyckvind, CSO at Powerworks. “Our knowledge in energy markets, engineering, and project execution, combined with Capalo AI’s advanced optimization tools, will allow us to unlock the full value of this BESS asset and drive meaningful as well as sustainable returns for our client. “
Henri Taskinen, CEO of Capalo AI, shared his enthusiasm: “Our collaboration with Powerworks aligns perfectly with our growth ambitions in Sweden and beyond. The Capalo Zeus VPP platform will empower the battery to generate maximum returns across Swedish ancillary services and Nord Pool markets, adding value for the client while contributing to a more resilient and adaptive energy system.”

About Powerworks
Powerworks is specialized in battery energy storage project execution and operation. With extensive expertise in EPC and project management, Powerworks enables industrial, utility and developer clients to benefit from optimized energy storage solutions tailored to their specific needs. Through dedicated fleet management services and partnerships, Powerworks assist clients in ensuring maximum market uptime, asset longevity, value- chain transparency and maximized returns.

About Capalo AI
Capalo AI is a sustainable tech company that maximizes the value of energy storage systems across all markets. We combine the most accurate forecast data with cutting-edge AI models to optimize the trading of battery energy storage systems.

Innovestor’s energy storage initiative, which focuses on “behind-the-meter” solutions, is estimated to cut carbon dioxide emissions by over 900 tons annually by reducing reliance on non-renewable energy sources through solar energy stored in the batteries. Finland’s Ministry of Economic Affairs and Employment has granted the project €3.6 million in REPowerEU support, aimed at accelerating the green transition.

“Storing energy directly in properties during periods of overproduction or low demand enables efficient use during high electricity price peaks. This not only alleviates grid stress during peak consumption but also enhances system resilience and supports local energy generation. Local energy storage reduces dependence on power plants, transmission infrastructure, and non-renewable energy sources, offering significant benefits to consumers, property owners, and the environment,” says Elie Kopaly, the Investment Director for the energy storage segment at Innovestor.

“Behind-the-meter energy storage systems will be increasingly important for the resilience of the Finnish grid. Innovestor is leading the way with its 15MW/60MWh initiative. We’re proud to partner with them to maximize the value of these batteries across every ancillary and wholesale market and pave the way for a decarbonized grid,” says Henri Taskinen, CEO of Capalo AI.

Innovestor is a Finnish investment manager focusing on venture capital, real estate, and energy storage. In addition, we offer corporate venturing services. The firm currently manages six VC funds with a total capital of over €250 million. Consisting of over 100 growth companies across multiple sectors of technology and life science & health, it represents one of the largest private venture-backed portfolios in the Nordics. Our mission is to make Good Money.

Capalo AI is a sustainable tech company that maximizes the value of energy storage systems across all markets. We combine the most accurate forecast data with cutting-edge AI models to optimize the trading of battery energy storage systems.

Capalo AI will aggregate, trade, and optimize Lehto Group’s distributed batteries within multiple Finnish ancillary markets. These batteries will be integrated into Capalo Zeus VPP (Virtual Power Plant), contributing to the balance of the Nordic electricity grid. By pooling the batteries, Capalo AI enhances flexibility in trading and scheduling, leading to increased revenues for real estate owners. Utilizing fully automated, self-learning trading strategies, battery state-of-charge management, and multi-revenue stream optimization, Capalo AI will maximize the lifetime value of these distributed batteries.

“The ongoing revolution in the energy landscape demands innovative thinking. Our partnership with Capalo AI to optimize distributed batteries in real estate is a significant step towards this innovation. Decentralized energy production and storage systems will be essential for the future of energy infrastructure, and together, we can maximize their full potential,” said Hannu Lehto, CEO and Member of the Board of Directors of Lehto.

“Decentralized energy production in real estate is crucial for a sustainable and resilient future. Our collaboration with Lehto Group showcases how intelligent optimization and orchestration of distributed batteries can meet the future demands of the electricity landscape,” said Henri Taskinen, CEO of Capalo AI.

Lehto Group’s history is in construction, property development, and manufacturing construction materials and prefabricated building elements. Today the company focuses on energy services, energy storage and distribution, and energy-saving services. Lehto Group is a stock-listed company on Nasdaq Helsinki Ltd.

Capalo AI is a sustainable tech company that maximizes the value of energy storage systems across all markets. We combine the most accurate forecast data with cutting-edge AI models to optimize the trading of battery energy storage systems.

The Mertaniemi BESS is one of the largest battery energy storage systems in Finland, with a nameplate capacity of 38.5MW/38MWh. The battery is a significant flexibility provider for the Finnish and Nordic grid, enabling the rapid commissioning of renewables.

“Battery energy storage systems are essential in enabling the clean energy transition and securing the resilience of the Finnish grid. With multiple markets and increased volatility, the optimization and trading of the battery becomes a key competitive advantage. We’re happy to partner with Capalo AI to maximize the profitability and impact of the 38MWh asset.” said Eero Auranne, Chairman of the board of eNordic Oy and the project company Mertaniemen sähkövarasto Oy.

“We’re delighted to partner to trade and optimize the Mertaniemi BESS—one of the largest in Finland. It’s essential to trade the asset in all markets with AI-powered algorithms to maximize its value in a rapidly evolving revenue landscape,” said Henri Taskinen, CEO of Capalo AI.

The developer of the BESS project is eNordic, Ardian’s operating partner in the Nordics. Ardian is one of the world’s largest private investment houses with over 160 USDbn assets under management and headquartered in Paris, France. The Mertaniemi BESS investors are Ardian Clean Energy Evergreen Fund (70%) and Lappeenrannan Energia (30%), the energy utility of the city of Lappeenranta.

Capalo AI is a sustainable tech company that maximizes the value of energy storage systems across all markets. We combine the most accurate forecast data with cutting-edge AI models to optimize the trading of battery energy storage systems.

For more information, contact:
Eero Auranne, Chairman of the Board, eNordic Oy, Tel. +358 40 425 2200

Henri Taskinen, CEO of Capalo AI, Tel. +358 44 036 9966
Riku Kukkonen, CSO of Capalo AI, Tel. +358 44 546 9012

“Renewable energy is the only sustainable way to achieve global climate targets. Storage facilities are needed in order to increase the share of renewable energy in the electricity grid further. This trading agreement with Capalo AI ensures our BESS investment will be utilized optimally on an hour-to-hour basis to help achieve these targets, “ said Aleksi Nordlund, Director Power Markets at Taaleri Energia

“We’re very pleased to start the partnership with Taaleri Energia, one of the leading clean energy investors, to maximize the value of their energy storage in a volatile and rapidly changing market environment. AI-based optimization and access to every revenue source are crucial in maximizing the lifetime value of a large-scale battery asset,” said Henri Taskinen, CEO of Capalo AI.

Taaleri Energia is a renewable energy developer and fund manager with one of the largest dedicated renewables investment teams in Europe. The team manages a 9.6 GW wind, solar and battery storage portfolio in Europe, the US, and the Middle East.

Taaleri Energia was ranked as a “Consistent Top Performing Infrastructure Manager” by Preqin in 2020, 2021, 2022 and 2023.

Taaleri Energia is part of the Taaleri Group, which is listed on the Nasdaq Helsinki stock exchange.
www.taalerienergia.com

Capalo AI is a sustainable tech company that maximizes the value of energy storage systems across all markets. We combine the most accurate forecast data with cutting-edge AI models to optimize the trading of battery energy storage systems.

For more information, contact:
Aleksi Nordlund, Director Power Markets, Taaleri Energia, Tel. +358 504536290

Henri Taskinen, CEO of Capalo AI, Tel. +358 440369966
Riku Kukkonen, CSO of Capalo AI, Tel. +358 445469012

The cooperation between Lempäälän Energia and Capalo AI is a significant step towards a more stable and secure electricity network.

Mikko Kettunen, CEO of Lempäälän Energia:
“The electricity market has become more volatile in recent years, and consistently finding the right bidding strategy is key to maximizing the value of energy storage. We understand the competitive advantage of AI and machine learning in a rapidly changing market. We are excited to partner with an innovative growth company in this field.”

Henri Taskinen, CEO of Capalo AI:
“Energy storage plays a key role in maintaining the stability of the electricity system as society becomes more electrified and renewable energy production increases rapidly. This collaboration is an excellent demonstration of our commitment to meeting the needs of the future electricity grid and the role of intelligent optimization and artificial intelligence in maximizing the value of energy storage.”

Capalo AI is a sustainable tech company that maximizes the value of energy storage systems across all markets. We combine the most accurate forecast data with cutting-edge AI models to optimize the trading of battery energy storage systems.

“Lempäälän Energia Oy’s mission is to act as an energy production company and operator of the LEMENE energy system in the Marjamäki region. We produce district heat with biomass-based production in two different heating plants. Electricity is produced from solar power and a combined heat and power generation system. The electricity produced supports the Nordic electricity network, and with industrial-scale battery storage, we participate in balancing the national electricity network’s consumption and production. The municipality of Lempäälä owns Lempäälän Lämpö, and Lempäälän Lämpö owns Lempäälän Energia.”

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,” says Henri Taskinen, CEO and Co-founder of Capalo AI.

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,” says 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,” states Petri Laine, Partner at Innovestor Venture Capital.

Taskinen sees significant future growth opportunities for improving the optimization and flexibility of renewable energy.

“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 concludes.

Capalo AI is a sustainable tech company that maximizes the value of flexible assets and energy storage systems across multiple markets. We combine the most accurate forecast data with cutting-edge AI models.

Innovestor is a Finnish investment company focusing on venture capital and real estate. In addition, we offer corporate venturing services. The firm currently manages four VC funds with total capital of over €200 million. Consisting of almost 100 growth companies across multiple sectors of technology and life science & health, it represents one of the largest private venture-backed portfolios in the Nordics. Our mission is to make good money. For more information visit www.innovestorgroup.com.

Inventure is the early-stage VC that knows how to get Nordic and Baltic founders to the next level. With €377 million under management, we thrive in moments where there’s plenty of uncertainty, backing over 90 portfolio companies including Wolt, Swappie, and aiMotive in their first rounds of investment. Meet us at our offices in Helsinki and Stockholm, or at an event near you. Find out more at inventure.vc