After the oil shock in the early seventies, the policy makers in this country had rightly envisioned that dependence on fossil fuel has to be reduced and should focus our thrust towards exploiting new and renewable sources of energy (NRSE) like solar, wind, micro-hydel, bio-energy, fuel cells etc. and also to improve the efficiency in energy use.

The Assam Energy Development Agency (AEDA) was earlier a part of Assam Science Technology & Environment Council (ASTEC). ASTEC was constituted in 1986-87 as an autonomous Council under the Department of Science Technology & Environment, Govt. of Assam for implementation of some of the major programmes in the sector of science & technology, remote sensing, energy (non-conventional & renewable sources) and environment as the institutional organization of the Department.

The Assam Energy Development Energy (AEDA) was formally constituted during July, 2002 under the Societies Registration Act (1860) to act independently as the nodal agency for new and renewable sources of energy under the Ministry of New & Renewable Energy, Govt. of India for the state of Assam.