Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1292

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 3
Chunk 1292
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 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 period comparisons of its nameplate capacity are indicative
of the growth rate of its business. The production capacity listed below for Poland, the Netherlands, Romania, and the United States reflect
the actual production from those parks while they were owned by or operating under the Company for the year ended December 31, 2024. The
parks were sold on January 19, 2024, February 21, 2024, October 3, 2024, and November 5, 2024, respectively. Refer to Footnotes 19 and
20 for additional information on the sale/disposal of the parks.

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The table below outlines the Company’s operating
renewable energy facilities as of December 31, 2024 and 2023:

    Year Ended December 31,