I was thinking about this, can someone just confirm if my thinking is correct:
If we overexcite the rotor winding that means increase the current which results in more magnetic flux which increases the stator voltage. So because stator voltage is higher then the voltage of the grid, because of that the stator current flows away from generator into the grid. So we are feeding the system with more VArs, and vice versa if we underexcite the rotor, we decrease the stator voltage, and the current flows into the generator, so we are sucking the VArs from the system.
Do I understand correctly? Thanks.