Reactive power supplies stored energy in reactive elements and must be supplied to magnetic equipment like motors and transformers. Problems with reactive power include excess heat from reactive current, inaccurate utility billing that doesn't account for reactive power, and potential equipment issues if not properly managed. Solutions include fixed capacitors/inductors to boost voltage, static VAR compensators to provide reactive power on transmission networks using automated impedance matching, and static compensators (STATCOMs) that generate reactive power using voltage source converters driven by DC storage capacitors.