There is generation of small terminal voltage oa (as in figure given below) across the stator terminal due the residual magnetism when the rotor of the induction machine runs at the required speed. Due to this voltage oa the capacitor current ob is produced. The current bc sends current od which generates the voltage de. The cumulative process of voltage generation continues till the saturation curve of the induction generator cuts the capacitor load line at some point. This point is marked as f in the given curve.