With limited indigenous conventional energy resources, Taiwan imports over 98% of its energy supply from overseas. Developing independent renewable energy resources is thus of priority concern for the Taiwanese government. A medium subtropical island surrounded by the Pacific Ocean, Taiwan has enormous potential to develop various renewable energies, such as solar energy, biomass energy, wind power, geothermal energy, hydropower, etc. However, owing to the importance of conventional fossil energy in generating exceptionally cheap electricity, renewable energy has not yet fully developed in Taiwan, resulting from a lack of market competition. Consequently, numerous promotional and subsidy programs have recently been proclaimed by the Taiwanese government, focused on the development of various renewables. However, the renewable energy with matured technology and low power generation costs will have priority in government development policy. Moreover, the authorities will encourage the industry players to consolidate their R&D and manufacturing capabilities. This study reviews the achievements, polices and future plans of Taiwan in this area.