Abstract
While the world is increasingly concerned with the utilization of fossil energy and carbon emission, renewable energies have been promoted by many governments as alternatives worldwide. Wind power is currently the most mature renewable energy technology. Although Taiwan is located in a region of abundant wind power, this energy industry still faces big challenges in effectively growing the market. This study employs a variation of the hidden Markov model (HMM) to analyze the development of wind power industry in Taiwan, because the renewable energy development is determined by multiple time-series-related factors. The methodology may assist industry in making correct investment decision and provide recommendations to the government for setting suitable green energy policy.