Algeria is rich in resources, including natural ones; the country actively promotes environmentally friendly industry and reduces its reliance on fossil fuels. In addition to expanding its solar and wind energy initiatives, the government aims to engage in the development of small and medium-sized hydroelectric projects. However, the hydropower industry helps Algeria’s total energy output reach a higher percentage of renewable energy sources. Through funding, regulations, and studies, the Algerian government promotes the growth of renewable energy. Algeria’s sunbelt location has enormous solar energy potential, and the government’s ambitious Sahara Solar plan is consistent with its goal of lowering fossil fuel dependency. On the other hand, Algeria’s renewable energy approach aligns with the focus of other MENA countries on solar energy, wind energy, geothermal and hydropower potential, policy incentives, international collaboration, and local capacity building. The government of Algeria has developed a range of policies and programs aimed at promoting the growth of renewable energy and achieving sustainable energy production. Nevertheless, Algeria has significant challenges caused by limited resources resulting from reductions in financial resources, restricted credit accessibility, apprehensions regarding investment security, elevated costs compared to rivals, inadequate local workforce, and a shortage of economic viability. To address these challenges, the government has implemented measures such as feed-in tariffs, power purchase agreements, tax benefits, and partnerships with international financial institutions. Furthermore, Algeria has successfully developed large-scale solar projects, such as the 150 MW project in Hassi R’Mel, integrating solar power into existing infrastructure. Off-grid and mini-grid solar panels improve energy access and livelihoods in underserved communities. This chapter discusses Algeria’s renewable energy potential for sustainable development and economic prosperity.