Smart Energy Finances: Funding for Capalo AI’s market optimisation platform

Leading this week’s Smart Energy Finances is pre-seed funding of half a million euros for Finnish startup Capalo AI, which will further develop its virtual power plant and market optimisation technology.

Also on the radar are an acquisition in the Netherlands of storage developer Equans by E.ON-owned energy company Essent and confirmation from ACWA Power that over $14 billion in projects reached financial close in the last 12 months.

AI for market forecasts and virtual power plants

Finnish energy tech startup Capalo AI has raised €500,000 ($531,445.50) in pre-seed funding.

Using advanced AI, the Capalo platform attempts to optimise the use of flexible energy assets, such as energy storage systems and EV charging stations, allowing the commissioning of weather-dependent renewable energy sources to grow by coordinating with the flexibility of the energy grid to adjust to production and demand fluctuations.

Capalo AI will use the funding to further develop its virtual power plant (VPP) and multi-market optimisation AI, as well as scale up its team with mathematicians and cloud service professionals.

According to the startup, with the popularity and commissioning of renewable energy rising globally, the role of energy storage and flexible demand will be crucial, necessitating the balance of consumption and production of electricity to ensure grid stability.

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.

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“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,” stated the company’s CEO and co-founder, Henri Taskinen, in a press release.

“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.

“Our solution simultaneously maximizes the value for our customers and accelerates the green transition. In addition, with multi-market optimisation, national grids are able to sustain a steady electricity frequency,” Taskinen added.

“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.”

The funding round was led by Finnish investment company Innovestor Tech Fund, with Inventure also participating.

A Dutch storage acquisition

Dutch aquifer thermal energy storage (ATES) solutions provider Equans Energy Solutions has been acquired by energy company and E.ON subsidiary, Essent, also based in the Netherlands.

Equans Energy Solution is part of Equans Nederland, the storage provider that develops solutions for households and businesses in the Netherlands.

Resi Becker, Essent’s chief executive officer, commented on the acquisition in a press release, stating its alignment with Essent’s aims to double down on their position in the energy sector: “We are pleased to welcome the new colleagues to our ‘Energy Infrastructure Solutions’ business unit. We are convinced that by combining Essent and Equans Energy Solutions we can further accelerate the energy transition with our people and our customers.”

Added Bas Evers, managing director of Equans Energy Solutions: “We are looking forward to working together with Essent and E.ON building on each other’s strengths, to collectively grow our portfolio to offer more clients affordable and reliable sustainable heating and cooling.”

Closing, which is subject to the applicable employee consultation process in accordance with Dutch law, is expected by the end of 2023.

A subsidiary of E.ON since 2020, Essent has over 90 years of experience generating, trading, transmitting and supplying electricity. Essent has 2.3 million electricity customers and approximately 2 million gas customers.

Also from Smart Energy Finances:
Series B funding for AI-powered grid analytics
Growth financing for AI-based network resilience

ACWA closes $14bn in projects in just 12 months

Renewable energy and water project developer ACWA Power has announced the closure of projects worth over $14 billion over the last 12 months.

The projects span Saudi Arabia, Egypt and Uzbekistan, including renewables, water desalination and green hydrogen, alongside the $8.5 billion NEOM Green Hydrogen project, the world’s largest utility-scale green hydrogen production facility under construction in Saudi Arabia.

Remarking on the figures during the Saudi Arabia Investment Forum in New York was Abdulhameed Al Muhaidib, the company’s CFO, who commented: “The past 12 months marks a historic milestone for us, as it represents the highest number of projects we have ever successfully achieved financial closure for within 12 months.

“It not only validates our expertise as a developer and operator of strategically vital projects but also speaks highly about the trust our investors and partners place in us.”

In addition to the NEOM Green Hydrogen project, ACWA Power also achieved financial close of the Ar Rass solar PV and the Al Shuaibah 1 and Al Shuaibah 2 solar PV projects, which form a critical part of Saudi Arabia’s National Renewable Energy Program (NREP); three wind projects in Uzbekistan – Bash, Dzhankeldy and Nukus; the Kom Ombo solar project in Egypt; the Shuaibah 3 IWP, and most recently the Rabigh 4 IWP in Yanbu.

Financing for the projects was sourced from several local and international financial institutions and infrastructure development funds.

Over the coming months, ACWA Power has stated it will continue to pursue new opportunities and partnerships that align with its mission to scale up its project footprint both within Saudi Arabia and globally.

At present, ACWA Power has 75 assets in various stages of development and in operation, in geographies including the Middle East, Africa, Central Asia and Southeast Asia.

To close, I had the pleasure of attending the Bentley Year in Infrastructure and Going Digital Awards this week in Singapore, where the value of and business case behind artificial intelligence across infrastructure, especially energy, was clearly being recognised.

The award winners include infrastructure projects that have overcome challenges and achieved set objectives by leveraging the latest digital advancements. It was a privilege to attend this event and celebrate the winners’ achievements.

And make sure to follow Smart Energy Finances Weekly for the latest in finance and investment news coming from the energy sector.

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

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