Costa Rica faces constant energy demand growth and environmental concerns for mega-power developments. The aim of this research was to determine if distributed generation might reduce the installation of mega-power plants in Costa Rica. As an alternative proposal to mega-power projects, Costa Rica’s industrial sector in an urban area might fulfill its own electricity requirements through to 2030, by installing photovoltaic modules in a distributed generation system. My proposal is that distributed generation will represent 6% of Costa Rica’s electricity consumption in 2030. This proposal could potentially replace six future mega projects, including two thermal plants. By eliminating these plants, Costa Rica might reduce its carbon footprint, thereby pursuing its carbon neutral goal by 2100. However, regulatory aspects represent a significant challenge for introducing distributed generation in the national grid. My research has determined that distributed generation is technically and environmentally beneficial within Costa Rica’s power security strategy.