Perry, 66, a former Republican presidential aspirant in 2008 and 2012, was once a vocal critic of Trump during the primaries.
"As the Governor of Texas, Rick Perry created a business climate that produced millions of new jobs and lower energy prices in his state, and he will bring that same approach to our entire country as Secretary of Energy," Trump said.
In a statement, the transition team described him as one of the most successful governors in modern history, having led Texas through a sustained period of economic growth and prosperity by developing the state's energy resources and infrastructure, and making low-cost energy available to companies and families.
Houston, the biggest cities in Texas, which is one of the country's largest states and one of the largest economies in the world, is considered as the energy capital of the world. It is home to top energy companies of the world.
More From This Section
"As the former governor of the nation's largest energy producing state, I know American energy is critical to our economy and our security," Perry said.
With his executive experience, Perry will carry out Trump's vision to make America energy independent, create millions of new jobs, and protect clean air and water, the transition team said.
Interestingly, he wanted to close down the energy department, which he would be now heading if confirmed by the Senate.
A veteran of the US Air Force, a former farmer, and the longest serving governor in Texas history, having led the world's 12th largest economy from 2000 to 2015, Perry grew up the son of tenant farmers in the tiny West Texas community of Paint Creek.
The Democratic National Committee in a statement alleged that Perry is "unfit" to serve as Energy Secretary.
"In fact, Perry released an energy plan some dubbed a 'wish list for the oil and gas industry' and he is currently serving on the boards of energy companies behind the Dakota Access Pipeline. He is unfit and unqualified to run the Energy Department as Energy Department secretary," DNC said.
Democratic Leader Nancy Pelosi said that in Perry, a person who wants to eliminate the Department he's been picked to lead, Trump has nominated yet another champion of the special interests.