A major challenge for next decades is development of competitive renewable energy sources, highly needed to compensate fossil fuels reserves and reduce greenhouse gas emissions. Among different possibilities, which are currently under investigation, there is the exploitation of unicellular algae for production of biofuels and biodiesel in particular. Some algae species have the ability of accumulating large amount of lipids within their cells which can be exploited as feedstock for the production of biodiesel. Strong research efforts are however still needed to fulfill this potential and optimize cultivation systems and biomass harvesting. Light provides the energy supporting algae growth and available radiation must be exploited with the highest possible efficiency to optimize productivity and make microalgae large scale cultivation energetically and economically sustainable. Investigation of the molecular bases influencing light use efficiency is thus seminal for the success of this biotechnology. In this work factors influencing light use efficiency in algal biomass production are reviewed, focusing on how algae genetic engineering and control of light environment within photobioreactors can improve the productivity of large scale cultivation systems.