Energy demand has been overgrowing in developing countries. Moreover, the fluctuation of fuel prices is a primary concern faced by many countries that highly rely on conventional power generation to meet the load demand. Hence, the need to use alternative resources, such as renewable energy, is crucial in order to mitigate fossil fuel dependency, while ensuring reductions in carbon dioxide emissions. Algeria—being the largest county in Africa—has experienced a rapid growth in energy demand over the past decade due to the significant increase in residential, commercial, and industry sectors. Currently, the hydrocarbon-rich nation is highly dependent on fossil fuels for electricity generation, with renewable energy only having a small contribution to the country’s energy mix. However, the country has massive potential for renewable energy generation, such as solar, wind, biomass, geothermal, and hydropower. Therefore, the government aims to diversify away from fossil fuels and promote renewable energy generation through policies and renewable energy-related programs. The country’s Renewable Energy and Energy Efficiency Development Plan focuses on large scale solar, wind generation as well as geothermal and biomass technologies. This paper provides an update on the current energy position and renewable energy status in Algeria. Moreover, this paper discusses renewable energy (RE) policies and programs that aim to increase the country’s renewable energy generation and its implementation status.