# Principle of AI operation

HUSBY utilizes biogas to generate electricity, but when the market prices are below $0.033 (or negative), we switch to market prices. This allows us to significantly reduce the cost of electricity. Below is an example of how the ai operates based on market price fluctuations:\
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**1. Continuous monitoring**

The AI continuously monitors electricity prices on the market in real-time. This includes tracking hourly fluctuations and identifying periods when electricity prices drop significantly, even turning negative.

**2. Dynamic switching**&#x20;

During periods when market prices fall below the threshold of $0.033 per kWh, the AI automatically switches the electricity supply from biogas to market electricity. This dynamic switching ensures that Husby always utilizes the cheapest available electricity, thereby minimizing costs.

**3. Cost efficiency**

For example, if the market price drops to $0.00 per kWh, the AI will prioritize using this market electricity, effectively making our electricity cost $0.00 per kWh during these periods. This strategy maximizes savings by leveraging low or negative market prices.

**4. Example operation**

Below is a sample operation schedule showcasing how the AI optimizes electricity use based on market prices (Negative electricity prices are marked in red):

<figure><img src="/files/zL3CMaPsGL5YG3FccVrR" alt=""><figcaption><p>Nordpool data</p></figcaption></figure>

Negative or low electricity prices are not always available. These fluctuations depend on regional consumption levels; the higher the demand, the higher the prices.

However, the AI ensures that the electricity cost never exceeds the rate provided by our biogas production.


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