Hello brucecranene
Perhaps the easiest answer is by example, so let us look at a 75KW motor operating on 400V
At full load, the current of the motor is 135 A and the power factor is 0.89
If the cables are sized for a 5% voiltage drop, there will be a power loss in the cables of 4.67KW. If we correct the motor (at the motor) to a power factor of 0.95, the power loss in the cables will reduce. The current drops to 126A and the power loss to 4.07KW. This is a saving of 603 Watts. - a very small percentage!!
If we increase the cable size, the voltage drop will reduce and so the savings will also reduce. i.e. select the cable for a 3% voltage drop, the cable losses will now be 2.8KW and the savings from the addition of correction at the motor would be 362 watts.
In this case, if you are able to make a significant saving from the addition of power factor correction, the cable must be undersized to give a voltage drop of over 5%
If you consider a situation where a motor is operating under very light load, then the saving as a percentage will be higher, but the watts loss will still be small if the cable is appropriately sized.
In the case above, under open shaft conditions, the current would be in the order of 34 amps and the cable loss would be in the order of 0.292KW Power factor correction would reduce this significantly because the open shaft current is primarily reactive, but the starting value is already low relative to the motor rating.
Best regards,
Mark Empson