Capalo AI

Capalo AI is a Helsinki-based sustainable technology company that develops AI-driven optimization and trading services for standalone and co-located battery energy storage systems (BESS). Its turnkey offering, Capalo Zeus VPP, aggregates large-scale batteries and renewable generation from multiple sites into a single virtual power plant and provides route-to-market access, automated multi-market trading and optimization, and Balance Responsible Party (BRP) and Balance Service Provider (BSP) services, covering the asset lifecycle from prequalification through lifetime value maximization.

The platform's optimization engine incorporates capacity and energy market prices and forecasts, meteorological data, imbalances and activations, and real-time market dynamics, while respecting asset-level constraints such as power rating, energy capacity, cycle warranties, grid restrictions and curtailment. A portfolio optimization model manages assets within a country as a single aggregated virtual pool, accounting for the portfolio's own price impact when allocating capacity and energy across markets to mitigate market saturation. The company also optimizes hybrid facilities combining solar or wind generation with storage, allocating ancillary service activations between generation and battery assets within grid capacity limits. Customers receive dashboard visibility into realized revenues and current trading period estimates, with periodic performance reviews from designated key account managers.

Founding story

The four founders established the company in 2022 around the premise that battery hardware alone cannot deliver value to the energy system or its owner, and that capacity must be intelligently orchestrated to maximize its impact.

Business model

Capalo AI sells a turnkey service to owners of grid-scale battery and hybrid renewable assets, combining route-to-market access, trading and optimization, and BRP/BSP services under multi-year contracts covering asset capacity. A third-party profile describes the commercial arrangement as including a profit-sharing model with battery owners.

Revenue is generated from optimization and trading services for contracted BESS and hybrid capacity; a third-party profile characterizes the model as profit-sharing with asset owners. Revenue grew fivefold in 2025.

Traction

More than 1.6 GW of BESS capacity under contract, with 500 MW of BESS and 300 MWp of PV live under trading and optimization across six countries. Prequalification engineers have enabled more than 300 MW of capacity to enter balancing markets, and asset integration specialists have connected over 50 customer assets to TSO interfaces in four countries. Contracted battery capacity passed 1 GW in 2025 alongside fivefold revenue growth and a doubling of team size to 48 people. Named mandates include a 180 MWp solar PV plus 65 MW/135 MWh hybrid park in Lithuania for Nordic Solar, a 50 MW/100 MWh project in Uusikaupunki, Finland for Renewable Power Capital, a 60 MW/120 MWh BESS in Vilnius for E energija group, 38.5 MW/43 MWh and 30 MW/30 MWh Finnish assets for eNordic, over 200 MWh for Olana Energy, and a 30 MW/36 MWh asset for Taaleri Energia.

Latest developments

In February 2026 the company announced an €11 million Series A led by Heartcore Capital with participation from Tesi and re-participation from VentureFriends, PROfounders, Inventure, Innovestor and family offices, earmarked for European expansion of its virtual power plant. Announced mandates include optimizing and trading Lithuania's largest hybrid solar and storage parks for Nordic Solar and Vindr's first hybrid solar and storage asset in Latvia, with entry into Estonia, Romania, Greece, Spain and Portugal targeted for 2026.