Small scale, decentralised electricity generation at village level, based on locally available biomass, is a promising solution for providing electricity access in remote rural areas, as it can supply villages with an independent, reliable, high quality and environmentally friendly energy source. However, despite such systems' technological feasibility, they are often discontinued. Research so far has not studied the reasons for discontinuation. This article analyses a case of biomass based gasification in India, by studying the type of goods the village system provides, and the distribution of benefits within the system. In this case, the infrastructural and social system provide electricity as a "club good". Given fluctuating numbers of service users, the club faced the decision to either expand the system to new members, or to reduce the services provided. The focus on the village community hampered the extension of "the club". A reduction in the quality and quantity of services however decreased the comfort provided by the system. The system faced what here is called a "club dilemma". To avoid the "club dilemma" and for a sustained energy provision, policy needs to find means to secure feedstock, i.e. by the means of subsidies or collaboration with agricultural departments. (c) 2013 Elsevier Ltd. All rights reserved.