Green energy transition fuels Merus Power's growth
Merus Power designs and produces innovative electrical engineering solutions, such as energy storage, active filters and compensators. Technology of the company promotes the use of renewable energy and improves power quality and energy efficiency, in line with sustainable development.
Innovation-based growth and internationalization are not just words. Merus Power started from zero in 2008 and set out to develop power quality technology for the international markets.
Power quality technology refers to industrial electrical equipment and solutions that clean the electrical network of harmful electrical phenomena by supplying it with the right electrical current. The same principle applies, for example, to noise-cancelling headphones, which suppress noise on audible frequencies.
Growing demand for energy storage solutions
In 2016, Merus Power expanded its portfolio from power quality to energy storage solutions. The company made strategic decisions to explore energy storage in two phases.
"In 2016, we realized that we could utilize our know-how and our own active filter technology with technical software changes and found a short-cut to a market that we could see in the horizon. In 2021, we made the final major strategic decision to list Merus Power on the stock exchange, seeking the capital required especially for the growth of energy storage from the stock exchange. We have now successfully implemented this growth strategy," says Merus Power CEO Kari Tuomala on the company's history.
"In Merus Power's energy storage, electric power is stored in batteries for later use. Our company's systems are dynamic and capable of receiving and supplying significant amounts of electricity repeatedly within time windows of under one second. Such systems are used, for example, to maintain the functionality of the national power grid in Finland," clarifies Head of Unit Riku Kalliomaa from Merus Power.
In both power quality technology and energy storage, Merus Power's own technology is of great importance. In addition, the company provides maintenance and support services through its global cooperation network.
Power quality is in the company's DNA, which we continue to draw from. We identified the energy storage trend at an early stage and seized the opportunity. The storage market has already grown larger than the quality market.
Today, Merus Power has customers in more than 70 countries – including energy-intensive industry operators, renewable energy producers and energy companies.
The green transition will increase the need for energy storage, and the company is seeking significant growth specifically from storage in the coming years.
"Power quality has always been an international activity, and it is where we have a global presence. In energy storage, we are still in the early stages of internationalization and are proceeding more traditionally: first, we develop our expertise in Finland and then head towards Europe. In August, we received an opening for the internationalization of our energy storage system with our first sale to Poland," describes Tuomala.
Leverage for internationalization from Business Finland
Merus Power would not have been able to expand as quickly and as comprehensively as it has without Business Finland, whose research and development funding (R&D) and export promotion services it has made versatile and successful use of.
"We are a good example of a Finnish innovation-driven company with the ability to grow and internationalize," says Tuomala.
During the early years, Business Finland's R&D funding enabled the company to develop basic technology such as active filters and software. Merus Power has a diverse product portfolio for different customer segments, and, over the years, it has secured R&D funding for new initiatives that still had many risks.
Between 2010 and 2013, Merus Power received Young Innovative Companies (NIY) funding from Business Finland. NIY-funding is intended for startups with a high business potential that have been in operation for less than five years.
"In the NIY program, we were able to focus on international growth and the development of business models. Since then, we have received help from Business Finland for example for developing sales channels and carrying out strategy work workshops," says Kari Tuomala.
Various events and commercial visits have given the opportunity for Merus Power to network with other Finnish companies. Tuomala and Kalliomaa believe in the value of peer-to-peer discussions and opportunities for sparring.
"Five years ago, there were 30-40 of us, today, we have 160 employees. Strong business growth has slowed down the development of our profitability. Scaling is turning things around, and the company's profitability is improving. We have created new jobs, employed people and brought in tax revenue. In addition, we work with an extensive network of domestic and European partners."
Account Manager Tuukka Vainio from Business Finland encourages companies to discuss their growth goals and challenges, as through discussion, they will find the right services for their needs.
"When companies, such as Merus Power, openly share the challenges and opportunities for their business with Business Finland’s experts, we can utilize our wide range of services and networks effectively. Close cooperation generates results that accelerates company growth and success both in domestic and international markets."
Footholds in Africa, Asia and Latin America
Emerging and developing markets in Africa, Asia, Latin America and Southeast Europe provide many growth opportunities for Finnish companies. Merus Power will see its biggest growth in 2025 coming from outside Europe.
"For example, we have a project of over 6 million EUR on power quality products in Egypt as part of a gigantic project to build new infrastructure and turn desert into farmland," says Riku Kalliomaa.
Merus Power has also received complementary top-up funding linked to a Business Finland funded R&D project in the framework of Developing Markets Platform to a project that explores new business models for power quality in developing markets. The purpose of the top-up funding is to enable co-development of sustainable innovations with local partners in developing markets.
The six-month funding period has opened up prospects for Merus Power in Colombia and Malaysia, for example, through cooperation with local universities.
Both countries are of interest to the company: Power quality regulation is changing in Colombia, while significant investments for example towards data centers are being made in Malaysia.
“Developing countries require long-term investment, but we have seen good results in the development of capabilities in a short time. By improving the reliability of power grids, we can do our part in improving infrastructure and promoting sustainable industries. In both Colombia and Malaysia, we started working with a university, aiming to develop local power quality expertise. We have assisted in the production of demonstration equipment for educational use," says Kalliomaa.
By supplying modern technology to hospitals and industry, the company contributes to strengthening well-being and promotes sustainable economic growth.
Developing markets are of great importance because they have at least as good or faster economic growth than Europe. We expect strong growth in Colombia and Malaysia, for example.
"Economies and populations of developing markets are growing rapidly, and they attract international attention and investments. These markets need sustainable innovative solutions that responsible Finnish companies can develop and offer," says Kiira Kärkkäinen, Head of Developing Markets Platform at Business Finland.
"Solutions developed with the top-up funding in collaboration with local partners can help the funded company grow, while promoting sustainable development in developing markets from the perspectives of, for example, the environment, social development, good governance or cost-efficiency,” continues Kärkkäinen.
Merus Power has already managed to expand its operations in Colombia. It has hired a new sales manager, who has been able to establish contacts in other South and Central American countries.
"The top-up funding is likely to boost the confidence and courage of the Finns to enter developing markets,” Kalliomaa points out.
GAP opens the door to the United States
Business Finland's Global Access Program (GAP) allows Merus Power to explore another angle: opportunities to expand into the US market. A group of UCLA students is drawing up a market access plan for the company, which becomes also their MBA thesis. The six-month project started in the summer of 2025.
"The plan examines the market for power quality products and systems. We are trying to look beyond the current tariffs and hopefully find viable alternatives. The goal is to build a sales channel in the United States," says Riku Kalliomaa.
Merus Power was included in the program for the first time in 2014, but it was then deemed too soon to start expanding to the United States.
– We didn't think we would be able to participate again. Ten years ago, we were a much smaller, completely different company. The project has gotten off to a good start, and there is enthusiasm on both sides, rejoices Kari Tuomala.
Business Finland has been our partner almost all the way, with only small breaks. All in all, we have received a lot of help from the Finnish innovation system to build our growth story.
What is Developing Markets Platform?
Developing Markets Platform helps Finnish companies develop innovative and competitive business in developing markets in line with sustainable development. It is a joint endeavor of Business Finland and the Ministry for Foreign Affairs (MFA), and the top-up funding provided has derived from the official development assistance by the MFA.
The top-up funding model of Developing Markets Platform was revised at the beginning of 2025. Similar top-up funding linked to R&D-funding by Business Finland and deriving from the official development assistance by the MFA can now be applied from Finnpartnership. Read more.