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So I understand that when you are correcting power factor you are decreasing the system's reactive power. This is usually done by adding capacitors, which also reduce the total current supplied by the source. Still, I don't get why voltage losses are decreased, for example, when you have a three-phase system with line impedances between loads.

So why does this happen? Why is voltage increased? Thanks.

Edit: apparently voltage losses are is actually increased, and power losses are decreased. Why?

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It's always best to have a specific circuit in mind when you ask questions. In general, though, reducing the reactive power reduces the line current, serving to reduce line losses while still delivering the same real power to the load. This increases efficiency and also means the source can deliver the same real power without supplying so much current. This tends to keep the source cool and improves its efficiency, too.

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