In 1981, Dhaka University established the nation’s first 'Renewable Energy Research Center' with the aim of conducting research on renewable energy in Bangladesh and to inform the public about renewable energy, especially solar energy. The "Renewable Energy Research Centre" was renamed the "Institute of Renewable Energy" in 2011 by the 15th Statutes of Dhaka University with the goal of conducting academic and research activities in the area of renewable energy as well as developing a skilled workforce for Bangladesh's developing energy sector. Later in 2013, with the approval of the Syndicate (meeting held on 10.11.2013) of University of Dhaka, the name of the institute was changed to Institute of Energy.
Energy Park which is an outdoor research lab of Institute of Energy was constructed at the Institute of Energy in 1988, for increasing public awareness of solar and wind energy, to provide direct knowledge for the general public, and to offer public and private educational and research institutions as an outdoor lab for teaching, research and development. The Energy Park houses various models of solar energy technology for public exhibition.
Currently, under this institute, MS in Renewable Energy Technology (MRET) is running from the academic year 2011-2012 and from the 2016-2017 academic year to the 2019-2020 academic year, the institute conducted the Professional MS in Renewable Energy Technology (PMRET) course. In future, it will once again conduct the PMRET Course. The institute also offers M.Phil. and PhD degrees in Renewable Energy Technologies.