TERI University's roots can be traced back to 1998, when 'TERI School of Advanced Studies' was established. The School was subsequently renamed as the TERI University in October 2006. TERI University was conceived to cater to the need of disseminating the vast reservoir of knowledge created by TERI, a not for profit, independent research institute recognized globally for its contribution to scientific and policy research in the realms of energy, environment, and sustainable development. 

The genesis of TERI University is rooted in the comprehensive research, consultancy and outreach activities of TERI. The relationship with TERI has propelled and influenced the evolution of the University's academic units. This relationship is enshrined in a memorandum of understanding between the University and TERI, wherein the two have agreed on collaborative research and programmes, joint studies and mutual support for seminars, symposia and conferences.