Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 306

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1A
Chunk 306
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 on third-party equity contribution, bridging and bank loans to pay for costs and expenses
incurred during project development, especially to third parties for PV modules and balance-of-system components and EPC and O&M services.
Such investments may be non-refundable. Solar parks typically generate revenue only after becoming commercially operational and once they
are able to sell electricity to the power grid. Between our initial investments in the development of solar parks (through its model of
working with local developers) and their connection to the transmission grid, there may be adverse developments impacting such solar
parks. The timing gap between its upfront investments and actual generation of revenue, or any added delay due to unforeseen events, could
put strains on our liquidity and resources and materially and adversely affect its profitability and results of operations.

13

We may experience
delays related to developing and maintaining renewable energy projects.

Development of solar
power projects can take many months or years to complete and may be delayed for reasons beyond its control. Development usually
requires a company to make some up-front payments for, among other things, land/rooftop use rights and permitting in advance of commencing
construction, and revenue from these projects may not be recognized for several additional months following contract signing. Furthermore,
we may become constrained in our ability to simultaneously fund other investments in such projects.

Development, operation
and maintenance of renewable energy projects and related infrastructure expose us to numerous risks, including construction, environmental,
regulatory, permitting, commissioning, start-up, operating, economic, commercial, political and financial risks. This involves risks of
failure to obtain or substantial delays in obtaining: (i) regulatory, environmental or other approvals or permits; (ii) financing;
(iii) leasing; and (iv) suitable equipment supply, operating and off-take contracts. Moreover, renewable energy assets are subject
to energy regulation and require governmental licenses and approval for their operation. The failure to obtain, maintain or comply with
the licenses and approvals relating to our assets and the resulting costs, fines and penalties, could materially and adversely affect
our ability to operate the assets. Renewable energy projects also require significant expenditure before the assets begin to generate
income and often require long-term investment to enable projects to generate expected levels of income. The development of solar power
projects also requires significant management attention to negotiate the terms of engagement and monitor the progress of the projects
which may divert management’s attention from other matters.

Solar project development