WHEREAS, the country is following a rural-based economic policy; and the development of energy plays a decisive role in ensuring sustainable socio-economic progress in rural areas;

WHEREAS, it is essential to undertake the study and development of energy resources and technologies suitable for rural areas in a systematic and coordinated manner;

WHEREAS, it has become necessary to substitute with modern methods the traditional energy utilization system, which has caused negative impacts on the environment;

WHEREAS, to attain these objectives, it has become necessary to establish an autonomous federal government organ conferred with appropriate powers and duties;

NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows: