I like to introduce the concept this way. Most of us know that if you wrap a wire around a nail and attach a battery to the wire, you will have an electromagnet. You can use this ?tool? to pick up paper clips, for example. However, even before you try to pick up your first paper clip, there is current flowing through the wire, and there is a magnetic field that is not doing anything. You have to expend some amount of energy just to create the magnetic field.
When you start picking up paper clips, there will be more current flowing in the wire. The magnetic field is now doing some useful work. The total current in the wire can be treated as being two separate currents flowing at the same time. One current establishes the magnetic field. That one is almost a waste of energy (and money), in that you don?t get any work out of it. But you would not be able to do any work if it were not there. So it is something of a necessary evil. The second current is what is allowing the magnet to do its work.
The physical phenomena taking place in an AC circuit that has a power factor lower than 1.0 is analogous, to at least a small degree. Let?s consider a motor that has a power factor of 0.8. Let?s say it is being powered by a nearby generator that was installed for the sole purpose of running this motor. That way, we don?t have to think about any other equipment. You build a generator by wrapping wires around a core. You build a motor by wrapping wires around a core. Each of these sets of wires will have a magnetic field associated with it. When the motor is running, the magnetic field of the generator will exchange energy with the magnetic field of the motor. This is another example of a necessary evil, just like the one I described above. The motor can?t run without this energy exchange, but the energy exchange is not what is doing the work. There is something like a ?second current? that is allowing the motor to drive its load, to do its work.
When you see the power triangle that someone else mentioned, you are seeing the impact of the ?two currents.? There is the ?Reactive Power,? drawn on the power triangle as the vertical line, representing the energy exchange between the magnetic field of the generator and the magnetic field of the motor. There is also the ?Real Power,? drawn on the power triangle as the horizontal line, representing the work being done by the motor. Finally, there is the ?Apparent Power,? drawn on the power triangle as the slanted line, representing the net effect of the other two types of power.
Does this help?