Race to dominate virtual power plant sector – Finland's Synergi scales up

The energy crisis has been one of Europe’s defining challenges in recent years, with skyrocketing prices, rising inflation, and the Ukraine war driving an urgent need for innovative solutions. Since 2022, energy has been a massive hot topic in the impact scene, attracting billions in investments aimed at tackling inefficiencies and reducing emissions.

For Antti Hämmäinen, the co-founder of Finnish impact company Synergi, the crisis was a call to action. In 2022, at just 27 years old, he was working at Cooler Future, a climate investment platform operating between Berlin and Helsinki. But he couldn’t shake the feeling that his own energy was better spent addressing Europe’s mounting energy challenges.

“I didn't know maybe what I would do, but I knew that the industry would be energy and the topics would be related to what we're actually building now,” he recalls.

There was no turning back!

"Cannot afford not to build"

Months later, Synergi launched in Helsinki. Inspired by structural inefficiencies in energy systems, Hämmäinen developed a software-based solution to optimise electricity use. He said he had the feeling that “this is something I cannot afford not to build. Like I need to test it out. Otherwise, I'll kind of drive myself crazy.”

After four months, the company had raised pre-seed funding and hired its first employee – “so there was no turning back!” laughs Hämmäinen.

Synergi’s consumer-facing product is an app that automates energy savings for users. Its features include optimising heating and cooling devices to cut electricity costs, enabling smart EV charging to customers save up to 50 percent on costs. Consumers are rewarded for shifting energy use during peak times to help stabilise the grid.

Europe's first Virtual Power Plants

In October, the company raised €2M in seed funding to develop one of Europe’s first virtual power plants (VPPs). If you’re not sure what that means, think of a VPP as a team effort for energy generation. Instead of relying on one massive power plant, a VPP connects smaller sources – like solar panels and wind turbines – to act as one large power system.

For customers, VPPs provide smarter ways to manage energy consumption. By using advanced software, a VPP can optimise when devices like EV chargers or heating systems draw electricity, shifting usage to off-peak hours when energy is cheaper and greener.

This not only cuts costs for households but also rewards them for contributing to grid stability by shifting demand when supply is tight.

Balancing supply and demand

For the grid, VPPs enhance flexibility and reliability. They pool and coordinate decentralised energy resources, ensuring that excess power from distributed sources like rooftop solar can be used effectively. By balancing supply and demand in real-time, VPPs reduce the strain on traditional energy infrastructure and help prevent outages during peak usage.

Hämmäinen explains, “It’s basically a chance for customers to save money and do their bit to reduce emissions through smarter energy usage. You can help with your own consumption to actually help the grid stay in balance and make sure we have enough power everywhere.”

The company is considering gift cards as an initial reward, allowing consumers to earn points through smart charging and redeem them elsewhere. Future options could include electricity bill discounts.

An increasingly mature market

Synergi has already partnered with three utility companies in Finland and boasts over 5,000 users across 11 countries. The timing couldn’t be better. Increased media coverage of the energy crisis has boosted public awareness and demand for energy-saving technologies.

“Thanks to media talking a lot about prices and solutions, the market is much more mature now,” says Hämmäinen. “We’re soon at an inflection point where this kind of demand flexibility will just blow up in Europe.”

However, there is tough competition. Scandinavian startups like Tibber (Norway), Greenely (Sweden), and larger energy companies like Svea Solar are making strides in energy optimisation. Outside the Nordics, players such as Octopus Energy in the UK and Sonnen in Germany are also building strong presences in the space.

Still, Hämmäinen says that since the market is huge, there is room for several players, and he’s pleased that there are other companies and founders that share his passion. “It's not a winner-takes-all market,” he says. Still he believes Synergi’s software solution is one of the most scaleable out there. “That’s something we hold ourselves accountable to.”

Prioritising European solutions

The global virtual power plant market, valued at $5.9 billion, is also growing rapidly, particularly in Asia. But Hämmäinen believes European startups have a competitive edge due to the region’s reputation for trust and data protection, especially against today’s backdrop of complicated geopolitics.

“There’s also a growing mentality within Europe to prioritise European solutions and boost our ecosystem,” he says. “Would I rather use this Finnish company or a Chinese optimisation tool? For many households, that choice is clear.”

Funding from Greencode Ventures

Synergi’s latest funding round was led by Greencode Ventures, one of the EU’s few female-led green transition funds. The fund is spearheaded by industry heavyweights such as Dr. Terhi Vapola, formerly of Helen Ventures, a Helsinki-based VC fund specialising in energy innovation; Kaisa Hietala, a former Neste executive and ExxonMobil board member recognised as Finland’s second most influential woman in business; and Ines Bergmann-Nolting, ex-E.ON leader with extensive experience in utility markets and now a board member at Synergi.

“The electrification of homes is a crucial step in the green transition, and Synergi’s solution is uniquely positioned to optimize energy usage and tap into the opportunity of flexible markets,” Bergmann-Nolting, Managing Partner at Greencode Ventures tells Impact Loop.

Hämmäinen adds that her expertise and credibility have been invaluable. “We were talking for a couple of months from the first contact to actually closing everything. So it was really, really smooth. And we knew from the beginning that they’re [Greencode Ventures] good for us.”

Synergi is already planning its next funding round, with ambitions to close this by early 2026.

“Although we have a much longer runway in terms of funding, you need to hit certain marks to stay ahead of the curve,” says Hämmäinen.