Concept:
Most industrial loads are inductive in nature and therefore consume:
\[
\text{Lagging reactive power}
\]
This causes poor power factor.
Power factor improvement is achieved by supplying:
\[
\text{Leading reactive power}
\]
using devices such as capacitors or synchronous condensers.
Step 1: Understanding poor power factor.
Inductive loads such as:
• induction motors,
• transformers,
• reactors
draw lagging current.
Hence:
\[
\cos\phi
\]
becomes low.
Step 2: Understanding reactive power compensation.
To improve power factor:
\[
\text{Lagging VARs must be cancelled}
\]
This is achieved using:
\[
\text{Leading VARs}
\]
Step 3: Role of capacitor bank.
Capacitors provide:
\[
Q_C = V^2\omega C
\]
which is leading reactive power.
When connected in parallel:
• capacitor current leads voltage,
• net reactive current reduces,
• overall power factor improves.
Step 4: Analyzing the options.
• Leading reactive power \(\rightarrow\) Correct
• Lagging reactive power \(\rightarrow\) worsens PF
• Apparent power \(\rightarrow\) not compensation quantity
• Resistive power \(\rightarrow\) incorrect terminology
Step 5: Selecting the correct answer.
Thus correct option is:
\[
\boxed{(1)}
\]