Various countries in the Middle East-North Africa (MENA) region have pledged to achieve 15–50% of their electricity supply from renewable sources by 2030. Most MENA countries focus on technological innovation and socio-technical feasibility in their energy transitions. Institutional co- evolution that goes with technological innovation and socio-institutional feasibility have received less attention. MENA countries like Palestine have adopted a central governance approach, which has been criticised by scholars (Cherp et al., 2018; Lee and Byrne, 2019) for its inability to deal with complex and longer-term societal changes and the de-centralised nature of renewable technologies. Dependence on central authorities’ top-down driven processes have led to overlooking of the potential of local government units (LGUs) and their local knowledge.

This PhD research adopts a mixed method approach, incorporating surveys, interviews and expert and roundtable discussions with Palestinian policy makers and energy experts, to examine practices of energy governance of local authorities in Palestine. The research analyses LGU modes of governance and their impact on energy justice, public finance and risk management to achieve sustainable energy transition. Palestine is situated in conflict context where it lacks control over its territories and infrastructure but where renewable energy transition could bring direct benefits not only in terms of environmental sustainability but also self-sufficiency.

First, the research applies the transition management and multi-level perspective framework (Geels, 2002; Loorbach, 2007) to investigate who are governing current energy sector and renewable energy transition in Palestine. The analysis suggests that governance networks are currently leading the efforts whereas LGUs are not systemically engaged in policy making due to central governance approach, despite LGUs contributions so far such as having implemented 50% of the total renewable energy installations.

Second, based on empirical data collected in surveys and interviews, the research describes LGUs modes of governance and categorises them as “Municipality as Planner'', “Municipality as Producer” and “Municipality as Facilitator” and analyses how they share the theme of “enabling”, whether by setting up "action space", building networks for stakeholder engagement, or partnering with investors to generate sustainable energy.

Third, the research explores reasons behind the marginalisation of local governance in current energy policy, which results in a situation where injustice is produced through top-down approach, institutional lock-ins, external conflict forces, and preference for larger-scale systems and centralised energy production. The technical and fiscal analysis suggests that “Municipality as Producer” mode of governance has potential to increase solar power capacity in Palestine and to reduce energy injustice. The research proposes mechanisms to include LGUs in decision-making, and to benefit from their local knowledge and access to vital resources, such as land that is at the heart of the conflict.

Fourth, the thesis investigates the impact of locally developed renewable energy projects with LGUs as an energy producer, based on two important parameters used by the government: public finances and encountering risks. The thesis implies the need for devolution and decentralisation in the energy policy to strengthen the role of multi-level actors and LGUs, in order to facilitate and produce renewable energy in the ongoing energy transition in Palestine.