The Algerian energy strategy is decidedly towards sustainable development by integrating the promotion of renewable energy. The legislative and regulatory framework adopted in recent years testifies to this irreversible commitment. Three major laws govern the field of renewable energy and state incentives enjoyed by this sector. The law on energy management enacted in 1999 provides for the creation of a National Fund for Energy Management (NFEM) which helps to finance renewable energy projects. As part of the implementation of the law on electricity and public distribution of gas by pipeline passed in 2002, executive decree on the costs of diversification of electricity production promulgated in 2004 provides for the granting of premium for green electricity up to 300% of normal rate. The law on the promotion of renewable energy in the context of sustainable development provides a national program to promote renewable energy and incentives for developing renewable energy. The implementing regulations are still pending. Some projects for electrification of rural villages in the sun have been made in Great South of Algeria. Currently, Algeria is engaged in two major projects that provide a place for solar and wind energy, hybrid gas-solar plant of Hassi R’Mel a capacity of 150 MW and wind farm in Tindouf. Other future projects are planned. In Algeria, despite a considerable potential, the share of renewable energies in the energy balance is still low especially in electricity generation. The rise of renewable energies in Algeria can not be conceived without the realization of a phased program of projects to produce electricity more important and connected to national grid electricity