http://img528.imageshack.us/img528/6983/energytut1rc0.jpg [Broken] http://img300.imageshack.us/img300/8168/energytut1suppou2.jpg [Broken] Now why does machine 1 act as a motor and 2 as a generator? The above question shows that both have current leaving the positive terminal - so the generator convention is assumed but they both absorb negative Real and Reactive power. Then why is either a generator and a motor? Do we consider the other a load once one is assumed to be a generator? Then what happens when we have multiple generators in a network?