The foundations and the vision of development of the Milan Vidmar Electric Power Research Institute were designed by its founder, Prof. Dr. Milan Vidmar, who saw very early that the development of the technologically demanding electric power system will require close cooepration of top experts under one roof.
The institute formally started operating on 1 June 1948, after its foundation on 21 May by the Ministry of Electric Power Economy of the former Yugoslavia. In March 1950, the Committee for Electric Power Economy at the federal government in Belgrade transferred the management of the institute to the Ministry of Electric Power Economc of Slovenia, more specifically, under the jurisdiction of SAZU.
From 1955 to 1958 the institute was extended into a scientific institution and soon expanded its activity in electric industry and was renamed to the Institute for Electric Power Economy and Industry. In 1968, twenty years after its foundation, it was renamed after its founder.