Algae can reproduce asexually and sometimes sexually. When it's asexual, the plant reproduces by simple fragmentation or budding, and this is how you want your algae to reproduce. When it reproduces sexually it releases gametes, and the reason the water turns cloudy is that your tank is essentially filled with algae sperm. The release of gametes is a massive source of pollution, basically releasing a lot of the nutrients it has absorbed over time, which is one of the main reason for growing it in the first place (nutrient export, not recycling).