What defines the net interchange component in the ACE equation for a Dynamic Schedule?

The net interchange component in the Area Control Error (ACE) equation for a Dynamic Schedule is defined by the total of net actual and confirmed interchange. This component reflects the transactions between balancing areas, accounting for what has been generated versus what has been scheduled. In the context of a Dynamic Schedule, where the interchange can change based on actual performance and agreements, measuring both actual and confirmed interchange ensures that any discrepancies between expected and actual flows are accurately represented.

This definition is crucial for maintaining system reliability and balance, as it informs operators how much actual power flow is occurring across interconnections compared to what was anticipated or scheduled, thereby allowing for real-time adjustments to be made to maintain stability in the grid.