It is difficult to design, implement, and manage renewable energy projects in Taiwan without a provision for capacity building enabling the application of modern technologies and techniques. The techno-economic potential of renewable energy technologies (RETs) is substantial. However, it is not certain that economically viable RETs will be utilized since this is greatly influenced by social, institutional, and political factors. To move from activities that enhance the current fossil fuel-based lock-ins and create an environment that increases the chance of successful transfer and diffusion of RETs, the Sunshine Power Cities project was established in southern Taiwan in 2005. This project was initiated by the Bureau of and the Ministry of Economic Affairs. Here, a detailed evaluation of the project is carried out by Energy retrospectively analyzing whether or not it strengthened local renewable energy innovations to develop Sunshine Cities as part of the strategy to help their cities gain RET status and in the process construct shared national and city identities. This evaluation shows that this renewable energy (RE) program strengthens most key processes in an innovation system conducive to technology transfer. (C) 2009 Elsevier Ltd. All rights reserved.