Power Factor Correction: As mentioned above, to minimise I²R losses in AC networks, it may be necessary to manipulate the power factor. This can be achieved by connecting a purely reactive impedance, Z' in parallel with the load impedance as depicted in Figure below:

(figure)Power factor correction by introducing a pure reactance in parallel with the load impedance.

By doing so, the phase angle between the line voltage and line current can be adjusted whereas the power consumption remains the same since a pure reactance does not dissipate any power (see Figure below). A carefully chosen reactance will decrease φ and thus increases the power factor which in turn reduces the line current.