Transformers and induction motors require kvar or consumes kvar where as
capacitor banks will produces kvar. If there are no capacitor banks the
generator will supplies kvar to the induction motors. Due to this power
factor will reduces and current drawn from the generator will be more.
If we install capacitor banks to supply the required kvar to induction
motor then the kvar supplied from the generator will reduces and power
factor will increases. Due to this current will reduces and losses will