Discussion
A synchronous motor acting as a condenser has to operate at :
Answer: A
A synchronous condenser operates at a leading power factor.
A synchronous condenser is a synchronous motor run without mechanical load and over-excited. Over-excitation makes it draw a current that leads the voltage by nearly 90 degrees, so it behaves like a capacitor bank and supplies reactive power to the system, improving the power factor of inductive loads and supporting the voltage.
At unity power factor it would supply no reactive power at all, and running at a lagging power factor (under-excited) would make it absorb reactive power like an inductor, the opposite of what a condenser is for.
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