The international political developments that led to the abolition of the two superpowers in the late 1980s, redefined the role of Greece as a country member of the European Union in Southeast Europe and in the wider Black Sea region and the Eastern Mediterranean.
The gradual development of energy policies of the European Union, the need for restructuring the energy markets and for strengthening relations between regional cooperation on these issues, led to the undertaking and completing a series of initiatives of regional scale. In the region of South Eastern Europe in particular, it allowed the development of a package of initiatives that  aimed to strengthening regional energy interconnections in three key areas: electricity, gas and oil, as well as, on strengthening efforts to restructure existing monopoly energy markets.
The Energy Policy Group (EPG) of the University of Athens (UOA) was creasted within this framework of policies, with basic geographic scope the activities surrounding the Black Sea – Caspian Sea, the Eastern Mediterranean and of course, the Southeast Europe.

The systematic study and the successful resolution of the energy landscape of the region, led to a series of studies, proposals and initiatives which have received acceptance by the basic energy stakeholders of the region.
The inventory and evaluation of energy interconnections of the Balkans, and the initiative for the establishment of regional electricity market in South East Europe were two of the most important successes of EPG, validated through a corresponding number of international meetings, ministerial conferences and policy papers – Agreement, prepared and negotiated by the Energy Policy Group.
The proposal of Professor Dimitrios Mavrakis, to create the Energy Policy and Development Centre, was  the expected evolution of international activities and international recognition of the role of the EPG, but also the need to supply the country with a university-level center, able to create relevant scientific potential.
With the encouragement of the Greek EU commissioner responsible for energy policy, senior officials from the European Union, the Greek government, with the assent of the late vice John Drakopoulos and the crucial, for the implementation of the KEPA, approval and inclusion in the ROP of Attica 2nd CSF, by the Secretary General of the Regional Attica, Mr. Nikolaos Michalopoulos, launched the creation and construction of the KEPA building in 1995.
After a long period of studies and research for the location, KEPA building founded in 1999, by the Rector of the University, Prof. Kon. Dimopoulos, with the presence of the late General Secretary of the Ministry of Development, Mr. Ant. Papathanasopoulos.
The construction and equipment of KEPA was completed in 2002 , the year in which it began to operate.
KEPA is governed by the institutional framework of the University of Athens, the financial transactions, in regard to the implementation of programs and missions undertaken, are implemented through the Special Account for Research Grants of the University.