Meaning its a way of letting dirty power into the system.
A big headache for electrical regulator boards is that of harmonic and interharmonic distortion. Failure to compensate for this will result in all sorts of problems throughout the grid.
In India, the majority of wind turbines convert mechanical power into electricity through directly connected induction generators. These induction generators require reactive power from the grid for excitation. The loads on the power systems in India also consume a significant reactive power, mainly due to agricultural pumps.
The resulting reactive power demand decreases transmission efficiency. Moreover, reactive power consumption is deleterious to the fundamental capacity of the power stations themselves as a result of the poor quality power factor unduced by the reactive power load. This becomes a critical issue when the available power station capacity is insufficient to supply the peak demand.
Finally, excessive reactive power consumption can be critical for the stability of the power system itself.
http://130.226.56.153/rispubl/VEA/veapdf/ris-r-1172.pdf