Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 291

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 2
Chunk 291
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●Expand our US and European
portfolio in regions with attractive returns on investments, and increase the Company’s long-term recurring revenue and cash flow;

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●Secure strong and predictable
cash flows via long-term FIT (feed-in tariff) contracts combined with the Company’s efficient operations. This allows for high
leverage capacity and flexibility of debt structuring. Our strategy is to reinvest of project cash flows into additional projects to
provide non-dilutive capital for Alternus to “self-fund” organic growth;

●Optimization of financing sources
to support long-term growth and profitability in a cost-efficient manner;

●As a renewable energy company,
we are committed to growing our portfolio of projects in the most sustainable way possible. Alternus is highly aware and conscious of
the ever growing need to mitigate the effects of climate change which is evident by its core strategy. As the Company grows, it intends
to establish a formal sustainability policy framework in order to ensure that all project development is carried out in a sustainable
manner, mitigating any potential local and environmental impacts identified during the development, construction, and operational process.

Given the long-term nature of our business, Alternus
operates with a strategic focus on sustained value creation rather than short-term quarterly performance. Our approach prioritizes maximizing
long-term shareholder returns by developing projects from the ground up and acquiring assets at various stages of maturity, whether in
development, under construction, or already operational. In parallel, we are expanding into complementary market segments that enhance
our operational capabilities and financial performance, strengthening the foundation for consistent, scalable growth.  

Key Factors that Significantly Affect Company Results of Operations
and Business

The Company expects the following factors will
affect its results of operations – inflation and energy rate fluctuations.

Offtake Contracts

Company revenue is primarily a function of the
volume of electricity generated and sold by its renewable energy facilities as well as, where applicable, the sale of green energy certificates
and other environmental attributes related to energy generation. The Company’s current portfolio of renewable energy facilities
is generally contracted under long-term FIT programs or PPAs with investment grade counterparties. Pricing of the electricity sold under
these FITs and PPAs is generally fixed for the duration of the contract, although some of its PPAs have price escalators based on an index
(such as the consumer price index) or other rates specified in the applicable PPA.

Project Operations and Generation Availability

The Company revenue is a function of the volume
of electricity generated and