Dominant conceptual models describe energy innovations as struggles between regime and niche actors that develop at the margins of established energy systems, and work against dominant energy regimes. Contrary to this conceptualisation, this paper argues that energy innovations develop through a more nuanced set of relationships, which lead to distinct innovation outcomes. Based on three case studies in Germany and Scotland, this paper finds that energy innovations develop in accordance with, independent of, or in opposition to regime structures, showing that a project's relative position within these structures influences the type and quality of its development. Making use of situational analysis, the paper challenges essentialising tendencies among scholars working with the multi-level perspective. Instead of understanding regime and niche as separable entities, situational analysis allows understanding how agency and innovations of local renewable energy projects transcend the boundaries of levels or systems. Policy makers are advised to acknowledge these complex interrelations. Side effects of policies deliberately directed towards other sectors might have significant effects on the energy sector.