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Most heavy electrical loads have a lagging power factor (Load current lags the load voltage). A capacitor draws a current that leads the load voltage, thus cancelling out the lagging current of the un corrected load..
Pure Resistance load will give you unity PF. if your load is non resistive in nature, which majority of loads are, you can mimic the load to be a resistive load. This can be done adding leading or lagging PF load, as explained by Kral.
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