Answer Posted / kj

Because it does not help the DG. The reduced current is
reactive only and does not load the engine.
If there is too much capacitance the DG can get a leading
power factor and if this is too great lose control of the
voltage.
In the grid capacitors are used to get the power factor
closer to unity and reduce the current. This means the
power lines can be smaller. If the power factor is leading
it is OK because others will have a lagging power factor to
balance it.

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