Tehila Kalagy

The global shift toward decentralised renewable energy highlights the evolving role of energy communities from passive consumers to active stakeholders. Yet local level initiatives often face structural, cultural, and institutional barriers, particularly in contexts characterised by informal governance and normative constraints. This study develops an analytical framework that explains how structural, cultural, and institutional conditions shape coordination incentives and the collective adoption of decentralised energy systems, using a mixed-methods approach that integrates qualitative fieldwork, techno-economic modelling, and game-theoretic analysis. The empirical case involves approximately 65,000 households in dense urban neighbourhoods relying on unregulated diesel generators, resulting in over 136,000 tonnes of CO₂ emissions annually and deepening energy poverty among low-income households. A strategic coordination model captures interactions among households, municipalities, and national institutions. The game-theoretic framework identifies two equilibria: a fragmented, polluting status quo and a cooperative transition supported by affordability, cultural legitimacy, and trusted intermediaries. By conceptualising households and municipalities as strategic agents, the study proposes a governance and planning framework that supports just and inclusive energy transitions. The findings highlight how local governance, cultural norms, and social trust shape collective action toward decentralised microgrids, offering a transferable model for advancing energy justice, resilience, and equitable access in communities.