Answer Posted / riaz abbasi
To transfer electrical energy from one place to another magnetic feild is required, and user of this magnetic fields are Transformers cores, generator flux, Motor flux, Iron core, inductors. to create this magnetic flux generator has to produce the Reactive power, and by controlling the exciting voltage we produce the reactive power. out of total generating capacity we produce 10-20 reactive power or in other words power factor reduce from 1 to 0.8, if more reactive demands appears than generator can import the reactive power and hence to compromise in the less active power generation and similarly power factor will go down, but generator is not for this purpose to facilitate each reactive power demand of system, so local capacitor banks are usually recommended if more reactive power appears.
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