Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 7

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1
Chunk 7
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att-hours (TWh) by 2030, an increase of almost 90% from 2023. This capacity would
be sufficient to meet the combined power demand of China and the United States in 2030.3

Drivers for Renewable Energy Adoption:

Climate Change and Environmental Impact:
The combustion of fossil fuels for energy production stands as the primary driver of greenhouse gas emissions, which are responsible for
global warming and widespread environmental damage. As the impacts of climate change become increasingly severe and evident, there is
an urgent and growing need to transition to cleaner energy sources. Renewable energy sources, in contrast to fossil fuels, emit minimal
to no greenhouse gases during their operational phase. This fundamental difference underscores the direct environmental benefit of adopting
renewable energy technologies as a key strategy in combating climate change. Renewable energies play a crucial role in reducing overall
Greenhouse Gas (GHG) emissions, thereby contributing to improved air quality and a significant mitigation of the adverse effects of climate
change.

Energy Security and Independence: National
dependence on fossil fuels, particularly oil and gas, has historically exposed many nations to geopolitical risks and potential disruptions
in supply. Renewable energy sources, such as solar, wind, hydro, and geothermal, offer a pathway to enhance energy security as they can
be developed locally, thereby decreasing reliance on imported fuels and bolstering a nation’s energy independence. These renewable
resources are available in virtually all countries, providing a viable route to reduce import dependency and allowing nations to diversify
their economies while shielding them from the unpredictable price fluctuations associated with fossil fuels. Expanding renewable power
capacity rapidly and strategically not only addresses immediate energy security concerns but also offers a sustainable solution for the
long-term. This dynamic is also now driving microgrid deployments as corporates seek energy independence from creaking and overworked
and increasingly scarce grid connectivity and performance.

Economic Advantages: Renewable energy has
largely emerged as the most economically competitive option for new power generation. The prices for renewable energy technologies have
been dropping rapidly in recent years. For instance, the cost of electricity from solar power fell by 85% between 2010 and 2020, while
the costs of onshore and offshore wind energy decreased by 56% and 48%, respectively.4 This increasing cost-competitiveness
makes renewable energy an increasingly attractive choice compared to traditional fossil fuel-based generation. Furthermore, investments
in renewable energy infrastructure not only stimulate local economies through job creation but also contribute to lower energy costs for