Decentralized Energy Planning (DEP) is one of the options to meet the rural and small-scale energy needs in a reliable, affordable and environmentally sustainable way. The main aspect of the energy planning at decentralized level would be to prepare an area-based DEP to meet energy needs and development of alternate energy sources at least-cost to the economy and environment. Present work uses goal-programming method in order to analyze the DEP through bottom-up approach. This approach includes planning from the lowest scale of Tumkur district in India. The scale of analysis included village level-Ungra, panchayat level (local council)-Yedavani, block level-Kunigal and district level-Tumkur. The approach adopted was bottom-up (village to district) to allow a detailed description of energy services and the resulting demand for energy forms and supply technologies. Different scenarios are considered at four decentralized scales for the year 2005 and are developed and analyzed for the year 2020. Decentralized bioenergy system for producing biogas and electricity, using local biomass resources, are shown to promote development compared to other renewables. This is because, apart from meeting energy needs, multiple goals could be achieved such as self-reliance, local employment, and land reclamation apart from CO2 emissions reduction. (C) 2009 Elsevier Ltd. All rights reserved.