In 2014–15, Pakistan’s provincial government of Khyber Pakhtunkhwa (KPK) launched a decentralised power generation initiative, installing over 356 small hydro power units to provide electricity to over 2.5 million people in its mountainous regions. This initiative built on the foundation of prior community-based mini/micro hydro-power projects (MHPPs) deployed in the region since the 1980s that have experienced mixed success; by 2020, over 150 units were non-operational. This paper investigates the socio-technical factors influencing the success and failure of these projects, focusing on outcomes and processes integral to community MHPPs. The study analyses the critical implications of MHPPs for socio-economic welfare, gender equity and democratic governance through extensive primary research including field observations at 40 sites, questionnaire surveys with community residents in three in-depth case-studies, and expert interviews with local policymakers and project developers. Analysis shows that electricity provision from MHPPs has had positive outcomes for the communities in terms of improved education, poverty alleviation and economic growth, alongside enhanced access to information and gains in women’s entrepreneurship and health. Nonetheless, the study also identifies significant shortcomings in the processes involved in community MHPPs related to inadequate technical assessments, monitoring, and evaluation, as well as challenges arising from undemocratic governance mechanisms and inequitable participation. By teasing out the multiple socio-technical dimensions that shape infrastructure resilience of MHPPs in KPK, this paper contributes to the broader discourse on sustainable community energy projects and informs policy for decentralised energy transitions that ensure democratic alignment and inclusive design.