In 1986 "Small Hydel Development Organization" was established to:

           - Identify and develop Hydel potential upto 5MW

           - Construct small Hydel stations for isolated load centers 

           - Operate and maintain off grid small Hydel stations    

In 1993 conversion of SHYDO into an autonomous body under Act 1993 renamed as "Sarhad Hydel Development Organization". In 2013 the name of the organization was changed as "Pakhtunkhwa Hydel Development Organization” (PHYDO). In 2014 conversion of PHYDO into PEDO through amendment in PEDO Act 2014 and PHYDO renamed as "Pakhtunkhwa Energy Development Organization" (PEDO). 

Pakhtunkhwa Energy Development Organization (PEDO) is an autonomous body of the Government of Khyber Pakhtunkhwa and responsible for fast track development of the energy sector of the province. PEDO is working to explore all possible energy avenues including renewables like hydro, solar and wind energy.

As the province of Khyber Pakhtunkhwa has immense potential for development of hydro power and so this area is being given the top priority, and private sector investment is being encouraged. Thermal power generation based on natural-gas or coal also comes within the purview of PEDO.