Topic summary
Power factor correction

Extracted from the Wikipedia article Power factor.
Power factor correction of linear loads
Power factor correction brings the power factor of an AC power circuit closer to 1 by supplying or absorbing reactive power, adding capacitors or inductors that act to cancel the inductive or capacitive effects of the load, respectively. In the case of offsetting the inductive effect of motor loads, capacitors can be locally connected. These capacitors help to generate reactive power to meet the demand of the inductive loads. This will keep that reactive power from having to flow from the utility generator to the load. In the electricity industry, inductors are said to consume reactive power, and capacitors are said to supply it, even though reactive power is just energy moving back and forth on each AC cycle.