Beyond grid extension: disruptive decentralized energy models for energy poverty alleviation and sustainable transitions in emerging economies

Purpose This study aims to examine disruptive decentralized energy models, such as pay-as-you-go (PAYG) solar home systems, mini-grids and community-owned renewables, from a strategic management viewpoint. It assesses their potential to simultaneously alleviate energy poverty and accelerate the transition to renewable energy in emerging economies in the Global South. Design/methodology/approach The study synthesizes evidence from 120 publications (2015–2025) via a systematic literature review guided by preferred reporting items for systematic reviews and meta-analyses (PRISMA) 2020 protocols, drawing from Scopus, web of science and gray literature. This is complemented by purposive case study analysis of the Kenya PAYG ecosystem, Nigeria’s mini-grid scale-up and community models in Nepal and Bangladesh, leading to the synthesis of an integrative and diagnostic managerial framework. Findings The analysis reveals that the transformative potential of decentralized models hinges on managing disruption as an integrated phenomenon across three interdependent pillars: technological, financial and socio-institutional. Success requires moving beyond isolated innovations to develop hybrid governance structures that proactively integrate these assets into national energy planning. Key to this is adaptive regulation, strategic utility adaptation and inclusive design that addresses equity gaps. Practical implications Actionable recommendations are provided for core stakeholders: policymakers should design technology-neutral rules and interconnection standards; utilities should evolve toward platform orchestration; investors should build robust local partnerships and risk-sharing models; and donors should prioritize capacity building and performance-based support. These strategies collectively enable emerging economies to leapfrog centralized limitations and transition to resilient, inclusive energy systems. Originality/value The paper’s primary contribution is the synthesis of the hybrid energy ecosystem management framework, a layered diagnostic tool that consolidates existing concepts of assets, finance, regulation and governance into a coherent strategic architecture. It equips sector leaders with a practical lens to identify systemic bottlenecks, manage tradeoffs and scale disruption equitably, moving beyond technical or siloed case analyzes.