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Mr. Rahman,
When it comes to end user like factories and buildings. Power factor can be improve by means of capacitor. But in power plants (were alternator/generator are used) they set the power factor depending on there running regulation. It means that it depends on the manufacturer and it can not be improve because they designed it in that way. And power plants need true and apparent power to generate.
Power factor being the difference of voltage and current in terms of its sine waves makes sense if in terms of alternator is concerned. Putting in mind that its not the alternator producing the power factor, but the load. So it is a must thing that the alternator can react to power factor in the load.
Be sure that it is properly sized according to the load while the power factor depends on the real and apparent power. So if your load will exceed the 0.8 standard power factor, you should get a larger alternator to react on the PF. but not the whole geneartor set.
Sir,
Power factor (at the generator terminals!) can be leading (positive) or lagging (negative). So to decrease power factor in the lagging direction (positive), increase the excitation applied to the synchronous generator. To decrease power factor in the leading direction (negative) decrease the excitation applied to the synchronous generator.
Thanks