There are basically one of 3 things that happens.
1) It gets stored for later use: pump hydro back upstream, batteries, etc…
2) It gets sold on the energy markets to neighbors. Quite often local electric grids are connected to other markets and allow the selling of wholesale electricity
3) reduce production of electricity. essentially balance production with consumption. If you have variable electricity rates in your area this is when the price of electricity can drop.
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