This research has been performed to help the Dutch government with the decisions and choices it has to make in order to meet the requirements of the Paris Agreement and the Climate Agreement. Decentralized energy systems can be a solution for meeting these requirements, however trade-offs have to be made between different system criteria, which are evaluated as values in this research. The aim of this research is to find out what strategies can reduce and deal with value conflicts that can be identified when designing a decentralized energy system considering the properties of a city district. A specific city district is analyzed, i.e. 'De Vruchtenbuurt' in The Hague, the Netherlands. The research starts with an identification of values, conversion factors, governance models and technical designs which are important when changing to a decentralized energy system in 'De Vruchtenbuurt'. Following the Capability Approach is used to structure the different components and the relations between them. Subsequently, a translation of the components into a simulation model is made, using the values to evaluate the acceptability of the capabilities. By analyzing the values that are conflicting (for different conversion groups) for different input parameter settings, insights are gained about possible value conflicts that can emerge in 'De Vruchtenbuurt' and possibly also in other city districts. Finally, an analysis on strategies is developed that can be effective to limit the emergence of the identified value conflicts and therefore possibly support the change to a decentralized energy system in 'De Vruchtenbuurt' and in other city districts. Policies (financial instruments and supporting innovations) that create more feasible solutions for the heterogeneous households are effective to limit the context dependent value conflicts. It is not realistic to eliminate all value conflicts, since some of the values are inherently in conflict with each other. For these conflicts thresholds can be formulated that should be met for every value. Given that value conflicts exist, focusing on the process of the change to a decentralized energy system is seen as important factor for support and participation.