Under the current wave of international responses to the growing threat of climate change, Taiwan cannot afford to step back from its goal of advancing its renewable energy, strengthening its energy self sufficiency and energy security. This paper will first analyze the high level dependency structure of Taiwan's energy demands; then we will explore Taiwan current situation in terms of renewable energy development; furthermore from an overview of the course of changes and development in Taiwan's energy policy, highlight the commitment to and aims of Taiwan's Renewable Energy Development, made by the government at the Annual National Energy Conference. Fourth, we shall analyse technological R&D, incentives, taxes, market reforms and other related policy tools. Fifth, in light of public announcements and budgets set in recent years for Taiwan's renewable energy research plan, highlight main strategies being given impetus by the government. Sixth, the author will discuss the implications of recent significant legal reforms to the development of renewable energy in Taiwan and from the correlating aspects of industrial structures and energy consumption, take the first steps in emphasizing the urgent need for adjustments to be made to Taiwan's industrial structure. Finally, this paper will conclude by examining current policies, legislation and strategies which are in place to promote this area in Taiwan and discuss the potential competitiveness and future scenarios which the development of Renewable Energy could mean for Taiwan.