Electrical energy can be converted into other forms of desired energy such as mechanical, heat, light etc. Electrical loads which operate by the virtue of magnetic induced by an alternating current power source are called inductive loads. These include equipment such as induction motors, electric furnace, fluorescent lamps AC, refrigerator, Oven, geezer, TV, fans, tube lights, water pumps and lifts etc.
These machines draw supply "apparent power" in term of "KVA" which is in excess of "useful work"measured in KW required by the appliance. The ratio KW=KVA OR power Factor = KW/KVA = 1. the power factor improvement is therefore equivalent to reducing the lag between total current (I) and voltage (V). In an inductive circuit (loads) the current lags behind the voltage and in purely capacitive circuit (in power factor correction device), current leads by 90o
Therefore, the introduction of power factory correction elements to inductive loads can compensate for the lagging currents associated with these loads. Thus, we can consider power Factor Correction device as a reactive power generator( Kvar Generator).
