Capalo AI Secures $4.1 Million in Seed Funding
Capalo AI, a startup based in Finland, has successfully secured $4.1 million in seed funding to enhance the efficiency of battery storage. The company’s innovative approach utilizes artificial intelligence to forecast renewable energy generation and consumption, enabling battery storage providers to optimize their operations.
Henri Taskinen, the CEO of Capalo AI, explained in an interview with Business Insider, “We operate between the markets and the battery storage providers, deciding and optimizing how to utilize batteries in the best possible way.”
The core aim of Capalo AI is to address a crucial bottleneck within the renewable energy sector: the intermittent nature of wind and solar power. This causes difficulties in accurately forecasting electricity production, potentially leading to energy waste if excess energy isn’t consumed immediately. To overcome this, Capalo AI provides a platform that leverages AI to analyze various data points, including weather forecasts and consumer energy consumption levels.
“Our model then decides, how do we run and schedule this battery charging so we can provide the right commitments to the grid?” Taskinen elaborated. The startup’s virtual power plants then send data-driven instructions to battery providers, specifying when to charge and discharge batteries based on factors like energy generation, grid capacity, and consumer demand.
“Then we decide how to utilize these batteries, so the battery owner can maximize how much they earn, and the grid benefits as much as possible,” Taskinen stated. Capalo AI then makes energy bids to electricity markets, agreeing on commitments to provide energy output to the grid. The company dispatches from the batteries, offering an end-to-end solution.
Capalo AI’s business model involves profit sharing, taking a percentage of earnings from the electricity markets. The company collaborates with renewable energy infrastructure investors, such as Swiss company MW Storage, to optimize battery usage.
The seed round was led by VentureFriends and PROfounders, with participation from existing investors Inventure and Innovestor. Capalo AI intends to use the new funds to expand into the Baltics.
