The present disclosure provides system (10) and a method for algal cultivation. The system for algal cultivation comprises a reservoir (1) which is configured to contain a fluid medium (6) having an algal culture; at least one circulating means (3) which is configured to circulate the fluid medium in the reservoir at a desired velocity; at least one covering means (5) which is configured in its operative configuration to at least partially cover an opening of the reservoir to at least partially block the light incident on the fluid medium and define intermittent light and dark cycle for the fluid medium for a predetermined period of time in the reservoir. Advantageously, the invention disclosed by the present disclosure improves biomass production, minimizes water evaporation in open pond system, avoids photo-inhibition or stress, provides optimum photosynthetic rate, provides efficient utilization of the space, provides efficient generation of resources such as renewable energy.