The invention provides an electrical generating system comprising an AC electrical generator (G) having an output, and a capacitor arrangement (Ca) provided at the output of the generator and arranged so as to offset a drop of voltage from no-load to full-load occurring at the output of the generator. As described, the generator (G) is a permanent-magnet generator having a plurality of terminals and associated output lines, and the capacitor arrangement comprises a respective capacitor (Ca) connected in series in each of the output lines, with the value of the capacitance of each capacitor being selected such that a drop of voltage from no-load to full-load occurring at the associated generator terminal is substantially offset at an output terminal of each said capacitor.