Answer Posted / arman

When the power factor is leading, the capacitive kVAr is
more than the Inductive kVAr and this still has to be
supplied by the source. As kVA is the vector sum of kW and
kVAr, still for the given kW, you have to produce more kVA.
Alternately, for the given kVA, you can only convert
partially into useful work.

Secondary effects are voltage boost in the system,
availability of stored energy to feed the fault in case of a
fault, increase in the asymmetrical component of fault
current, increasing thus the peak value of the fault
current, etc.

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