Yes. For what purpose? Presumably for power factor control? (Ahh, yes--I should have read the title of the thread.) It would be the same as power factor control capacitors used anywhere else.
I would question whether you really needed them--I wouldn't expect your "transmission lines" to be that long that you'd save significant money by switching to smaller cables.
Hmm, on the other hand (I'm not a generator expert), maybe you'd get more power out of the generator (kilowatts) if the generator isn't also generating kvars--I'm assuming the kvars would add heat to the windings...
After more thought, I'm certain that the kvars (or the current flow due to the kvars) will add to the heat rise in the generator windings. If you could get rid of the kvars in the generator (i.e., supply the kvars from power factor correction capacitors external to the generator (where else would they be ;-)), you will be able to get more kilowatts out of the generator.
So, it my indeed make sense to add p.f. capacitors.