Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1970

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 6
Chunk 1970
---
 over conventional power generation; and

    ●
    Government policies that encourage the development of renewable power, such as country, state or provincial renewable portfolio standard programs, which motivate utilities to procure electricity from renewable resources.

Access to Capital Markets

The Company’s ability to acquire additional
clean power generation assets and manage its other commitments will likely be dependent on its ability to raise or borrow additional funds
and access debt and equity capital markets, including the equity capital markets, the corporate debt markets, and the project finance
market for project-level debt. The Company accessed the capital markets several times in 2023 and 2024 in connection with long-term project
debt, and corporate loans and equity. Limitations on the Company’s ability to access the corporate and project finance debt and
equity capital markets in the future on terms that are accretive to its existing cash flows would be expected to negatively affect its
results of operations, business, and future growth.

Foreign Exchange

The Company’s operating results are reported
in United States dollars (USD). The Company’s current project revenue and expenses are generated in other currencies, including
the Euro (EUR), the Polish Zloty (PLN), and the Romanian Lei (RON). This mix may continue to change in the future if the Company elects
to alter the mix of its portfolio within its existing markets or elect to expand into new markets. In addition, the Company’s investments
(including intercompany loans) in renewable energy facilities in foreign countries are exposed to foreign currency fluctuations. As a
result, the Company expects revenues and expenses will be exposed to foreign exchange fluctuations in local currencies where the Company’s
renewable energy facilities are located. To the extent the Company does not hedge these exposures, fluctuations in foreign exchange rates
could negatively impact profitability and financial position.

Key Metrics

Operating Metrics

The Company regularly reviews several operating
metrics to evaluate its performance, identify trends affecting its business, formulate financial projections, and make certain strategic
decisions. The Company considers a solar park operating when it has achieved connection and begins selling electricity to the energy grid.

Operating Nameplate capacity

The Company measures the electricity-generating
production capacity of its renewable energy facilities in nameplate capacity. The Company expresses nameplate capacity in direct current
(DC), for all facilities. The size of the Company’s renewable energy facilities varies significantly among the assets comprising
its portfolio.

The Company believes the combined nameplate capacity
of its portfolio is indicative of its overall production capacity and period to