The Context and Evolution of the Distributed Generation in the São Paulo Macrometropolis

In this study, we present the consumer’s profile and possible regulatory unbalances related to the distributed generation (DG) in the São Paulo Macrometropolis (SPMM) by approaching economic, technical, and regulatory analysis. The discussion pointed to the negative and positive economic externalities, supported by secondary data from the literature, official documents, and reports containing electricity data about the supply and demand (SPMM). We conclude that the region is underperforming in DG installed capacity, considering its resource availability. Results also point to an increase in photovoltaic systems, which dominate DG in the SPMM, and a decrease in costs per watt installed globally. However, cross-subsidies that could compromise or minimize DG advantages were identified, considering (a) the higher economic profile of the prosumers, (b) the complexities the DG brings to operate the grid, and c) the regulatory tariff composition.