This paper analyses the case of bioenergy development in Norway - drawing on Hedmark county located on the borders with Sweden - from a social, economic and environmental perspective (triple bottom line). Since 2008, the number of forest-based bioenergy plants increased rapidly, following the introduction of the wood-chips scheme and the high local expectations of its benefits for rural development. Obstacles to its continuous sustainable development have subsequently been increasing. Therefore, the goal of the study is to investigate the causal processes of bioenergy development to understand what threatens its triple bottom line sustainability. The study does so by employing qualitative system dynamics (i.e. causal loop diagram) and using interviews with local actors to elaborate on studies that look at the influence of power, institutions and expectations on the transition processes. Results show that the local actors' positive perceptions of the benefits of bioenergy mainly drove its initial development, but that conflicting local interests, power relations, and market dynamics now threaten these initially positive perceptions.