A capacitor bank is connected across the stator terminals of the Induction generator and loaded into a Wind Energy conversion system to:

The correct answer is option 1):(supply reactive power to both the machine and load)

Concept:

• An induction machine requires reactive power for  the purpose of excitation
•  When an induction generator is connected to a grid, it takes reactive power from the grid.
• A capacitor bank can be connected across the stator terminals to supply reactive power to the machine as well as to the load
•  A small voltage is generated across the stator terminals due to residual magnetism when the rotor is rotated at enough speed.
• Due to this small generated voltage, capacitor current is produced which provides further reactive power for magnetization.
• A capacitor bank is connected across the stator terminals of the Induction generator and loaded into a Wind Energy conversion system to supply reactive power to both the machine and load