Your boss must be an MBA.
Show him a number and he will demand that it be higher.
One way to do this, (and we did this once as an experiment) is to connect a second generator in parallel.
Adjust the throttles so that one generator is supplying 100% of the real power and the other generator is supplying 0.0% of the real power.
Now adjust the excitation so that the set supplying the real power is supplying 0.0% of the reactive power and the set supplying 0.0% real power is supplying 100% reactive power.
The adjustments interact and also interact with the voltage.
Trim the throttles for real power.
Trim the excitation for the 100%/0.0% division of reactive power.
Trim excitation again to correct the voltage.
Go back and trim the throttles.
Trim the excitation for reactive power sharing.
Trim the excitation for voltage.
Rinse and repeat, about 4 or 5 times.
It is fun but it is pointless.
Back to the real world:
If your compressors are running 0.8 PF, than they need that much reactive power to operate.
On a grid based system, you may add capacitors to improve the PF as seen by the grid, but that does not change the PF of the motor.
The combination of motor and capacitor may have 100% PF but the motor by itself is still running at 0.8 PF.
It needs those VARS that cause the poor power factor.
Normally, an induction motor draws the needed VARs from the grid, but the VARs may be supplied locally by capacitors.
So, what will happen if the PF is corrected with capacitors?
1. The current between the generator and the motor will drop slightly, and so the voltage drop between the generator and the motor will drop slightly.
That's good, right?
How good?
Let's assume that the voltage drop is 3%. We will save a small part of 3% of the losses, which are already a small percentage of our cost.
Adding capacitors here will be spending a lot of money for "Feel Good" but with actual savings.
The time to repay the investment will be decades.
If interest is on the cost of capacitors is considered, you will never save enough to pay the interest.
The downside.
Adding capacitors will drive the voltage up.
How much? Hard to say.
What can happen?
The generator may be driven into saturation. That will probably be self limiting and the voltage will go so high and no higher.
The motor may be driven into saturation. That may damage the motor, it may damage the generator, or it may damage both.
And, by the way, an almost universal design and rating for generators of that size is for 0.8 PF.
Check the nameplate. (The set nameplate, not just the generator end nameplate).
Take a picture of the 0.8 PF rating.
Share this post and the picture with your boss.
Good luck.
ps; You may edit out the MBA comments. grin
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Ohm's law
Not just a good idea;
It's the LAW!