Thank
I had a suspicion it would be worse. But how does phase displacement tie into harmonics?
It doesn't really. They are two different things. Displacement and distortion.
Examples.
A common (cage) induction motor usually has a lagging power factor. The current lags the voltage. Capacitors on the supply can be used to compensate for this because the have a leading power factor to cancel out the lagging power factor of the motor. Hence the term power factor correction or PFC.
Distortion, the other flavour, is caused by non-linear loads. Things that draw non-sinusoidal current. VFDs are a common example that gets attention. As a system designer, you know that going in and the design needs to be compliant with applicable standards. The solutions for this are just a tad more complex than slapping some PFC capacitors on the supply. Actually, naked PFC is best avoided in this situation. It can bite you in the bum.
Passive or active harmonic can be used. Multi-pulse rectifiers. Active front VFDs is another. Such solutions obviously come at a cost. Good system design is essential.
But I might mention in passing another issue that tends to slip under the radar. We live in a world where there is an ever increasing load of non-linear devices, much of it at domestic level. Chargers, computers, televisions, CFLs. Such devices generally fall below the level that has to be addressed. But the sheer number of them from every household causes significant harmonic distortion on the supply.