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An induction motor is used for driving mechanical loads; Its efficiency is lesser than that of synchronous motor of the same output and voltage rating. Induction motor is cheaper than synchronous motor with same ratings; Induction motors are bit bigger in size than synchronous motor due to its construction.
A synchronous condenser is operated in a borderline condition between a motor and a generator with no mechanical load to fulfill this function. It can compensate either a leading or lagging power factor, by absorbing or supplying reactive power to the line. This enhances power line voltage regulation.