To finance the expansion of its battery energy storage system portfolio, Cactos, a manufacturer of smart energy storage systems, has collected over €26 million in equity investments through its Cactos Fleet Finland Limited Partnership.
Investment Goals Unveiled:
The Finnish Climate Fund and OP Finland Infrastructure LP are the round’s lead investors.
Cactos Fleet Finland LP aims to raise €70M in the capital, of which €35M will be provided by debt and €35M by equity. With an estimated two-and-a-half-year investment time and an anticipated ten-year operational duration, the company plans to allocate all of its money to smart energy storage units.
According to Oskari Jaakkola, founder, and CEO of Cactos:
“We founded Cactos Fleet Finland LP because infrastructure investment is crucial for the energy transition, particularly for assets that can support grid services and demand response. Battery energy storage systems (BESS) are a great approach to balance the grid overall and give consumers greater consumption flexibility. However, smart energy storage units are capable of much more. For this reason, Cactos Fleet Finland LP offers its clients the best behind-the-meter smart energy storage systems available on a lease basis. These clients can use the systems to optimize local production and consumption, guarantee the reliability of the electrical supply, and take part in grid-level operations like frequency balancing.”
Smart Energy Solutions – Cactos:
The company installs its smart energy storage systems in locations where they provide customers with backup power, level out local demand peaks, protect against price volatility, and, when appropriate, maximize the use of the property’s electricity output. Through the use of Cactos Spine, a proprietary software platform, all of the units held by Cactos Fleet Finland LP are combined to form a sizable virtual battery that maintains the stability of the transmission system. Balancing generation and consumption promotes and permits the growth of renewable energy and generates income for the business and its customers.
“Big real estate, housing, and logistics firms require solutions to deal with issues like high energy consumption peaks brought on by charging several electric cars at once and to safeguard themselves against fluctuations in the electrical market. Our energy storage unit, along with Cactos Spine, actively optimizes these operations automatically,” Oskari Jaakkola added.
The present funding cycle enables the extensive implementation of intelligent energy storage systems. As of December 2023, the company has 50 Cactos One units, but recent funding aims to expand to over a thousand. The largest system, a 2.5 MWh Cactos One, operates in Tuusula, Finland.
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Cactos developed and manufactures all energy storage devices held by Cactos Fleet Finland Limited Partnership. Among the models are the Cactos One Classic unit, which runs on second-life Tesla EV batteries, and the Cactos One Cardo, which runs on first-life lithium iron phosphate batteries. The Cactos Spine cloud system automates every unit.
“All societal sectors must be electrified to make the transition to a greener economy. The viability of the future energy system will largely depend on the local infrastructure that supports the production of clean power, given the rise in home electricity demand and the extremely weather-dependent nature of renewable energy sources,” said CEO of the Finnish Climate Fund Toni Mikkonen.
Toni further added: “What’s interesting about Cactos’ investment company is that the energy storage systems are offered to the customers with a service model and can therefore be put into use quickly.”
Tuomo Urrila of OP Finland Infrastructure LP said:
“The necessity for energy storage and the volatility of the power markets have increased due to the growth in weather-dependent electricity output. We are excited to join forces with Cactos, delivering customer-centric solutions while enhancing the overall stability of the electricity grid.”
Electrification fuels charging infrastructure investments, driving demand for smart storage in logistics and car charging. Increasing solar production intensifies the need for efficient electricity storage amidst market volatility.
