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The world’s existing electricity grids face several challenges if they are to continue to provide a stable supply in the future. Aging electricity grids and the massive implementation of renewable sources require a different flexibility and robustness of future grids. Large amounts of renewable sources are implemented locally and on a small scale, increasing pressure on distribution grids to manage variable generation and bi-directional power flows. A decentralized electricity system includes both new technological designs as well as social re-organizations where prosumers become more prominent in the development and responsibilities of the electricity system. The existing centralized electricity system is fundamentally different from the decentralized, and the transformation requires an institutional framework which support the logics of decentralized technologies and organizations. Some technologies which are relevant for a decentralized electricity system include solar PV and MGs. The aim of the thesis is to investigate how the transformation toward a decentralized electricity system affects and is affected by informal institutions among relevant actors, specifically prosumers, and formal institutions related to the existing electricity system. To guide the aim this research uses a conceptual framework stemming from the theoretical field of sustainability transitions with a special emphasis on institutions. The results show that a wide variety of experienced values enhances the positive experiences with solar PV technology and thus prosumers increase their engagement and responsibilities in their own electricity system. Moreover, the values are used to enhance the positive narrative of the niche and thereby increase the attractiveness for external actors. In the formative developing field of community MGs, institutions play an important role. Informal institutions shape the formal institutional development, which also influences the informal institutions in return, by enhancing opportunities for certain groups, such as the energy democracy movement, to reach out with their message. Thus, it is concluded that informal institutions play a significant role in the development of a decentralized electricity system, affecting several niche development parameters and influencing the initial trajectories to further develop. Moreover, it is concluded that institutional developments are crucial for the development of community MGs and that informal institutional developments within communities are shaping the formal institutional developments in the sector.    

The electricity sector faces its largest transformation since its beginning about a century ago. Combinations of ageing electricity networks, removal of fossil supply sources and electrification of industry and transport sectors require vast efforts at all levels of society. Increasing renewable supply and demand sources means the growth of distributed energy resources. This thesis explores what this transformation means for society; how it affects the traditional actors and “new” active users in the energy system. Traditional actors include electrical utilities and distribution system operators; the “new” actors include different types of prosumers such as property companies and communities. In addition, the thesis investigates the nature of the energy transition towards an increasingly decentralized organization with the ultimate goal of increasing understanding of the potential values, organizational demands, institutional setup, and role changes required for this transformation. To investigate this, the thesis departs from theories of sustainable transition and applies analytical frameworks to different local energy systems cases, specifically small-scale solar PV plants and microgrids. The chosen empirical areas are motivated both by the recent growth in these technologies and that their features enable a complete decentralized energy system configuration, which is interesting as an extreme case in energy transition. Findings are presented in four different articles. One conclusion is that values from distributed energy resources go beyond what the current centralized system is able to provide.  Both traditional as well as “new” actors can benefit from these values, although it requires an understanding and endorsement of alternative “value logics” stemming from prosumer-oriented configurations. Further, the findings show the relation between values, engagement, and evolvement of roles and responsibilities for local energy systems.  These can be utilized by policymakers who desire to expand the renewable energy sector and, at the same time, increase incentives for users to actively engage in the energy system. However, the findings also show deep lock-ins in current centralized structures, both organizationally and institutionally, which need to be managed to realize the full potential of distributed energy resources. The thesis does, however, contribute with examples of proactive cases which can be utilized to learn from and create abilities among actors to transform along the decentralized energy transition pathway.