What occurs when a Balancing Authority is relieved of its load demand through local generation?

When a Balancing Authority is relieved of its load demand through local generation, it often leads to a situation where the existing interchange transactions may need to be curtailed. This happens because the Balancing Authority's total generation needs to match the load demand within that area. If local generation increases and compensates for the load, there may be an excess of energy being produced relative to what is needed for consumption.

In the context of balancing entities and the larger electric grid, maintaining balance is crucial. If a Balancing Authority finds itself with surplus generation due to local generation meeting or exceeding the load demand, it may have to limit its exports or adjust its interchange agreements to avoid overloading the transmission system or introduce inefficiencies in the operation of the grid.

This curtailment process helps in managing the balance and ensuring that the electrical system remains stable and operates within designed limits. It reflects the dynamic nature of balancing authorities as they respond to changes in both load and generation in real time.