Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 60

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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 require that the project-level
cash is used to meet debt obligations and fund operating reserves of the operating subsidiary. These financing arrangements also generally
limit the Company’s ability to distribute funds generated from the projects if defaults have occurred or would occur with the giving
of notice or the lapse of time, or both.

Renewable Energy Facility Acquisitions and Investments

The Company’s long-term growth strategy
is dependent on its ability to acquire additional renewable power generation assets. This growth is expected to be comprised of additional
acquisitions across the Company’s scope of operations both in its current focus countries and new countries. Our operating revenues
are insufficient to fund our operations and our assets already are pledged to secure our indebtedness to various third party secured creditors,
respectively. The unavailability of additional financing could require us to delay, scale back, or terminate our acquisition efforts as
well as our own business activities, which would have a material adverse effect on the Company and its viability and prospects.

Management believes renewable power has been one
of the fastest growing sources of electricity generation globally over the past decade. The Company expects the renewable energy generation
segment to continue to offer growth opportunities driven by:

●The
continued reduction in the cost of solar and other renewable energy technologies, which the Company believes will lead to grid parity
in an increasing number of markets;

●Distribution
charges and the effects of an aging transmission infrastructure, which enable renewable energy generation sources located at a customer’s
site, or distributed generation, to be more competitive with, or cheaper than, grid-supplied electricity;

●The
replacement of aging and conventional power generation facilities in the face of increasing industry challenges, such as regulatory barriers,
increasing costs of and difficulties in obtaining and maintaining applicable permits, and the decommissioning of certain types of conventional
power generation facilities, such as coal and nuclear facilities;

●The
ability to couple renewable energy generation with other forms of power generation and/or storage, creating a hybrid energy solution
capable of providing energy on a 24/7 basis while reducing the average cost of electricity obtained through the system;

●The
desire of energy consumers to lock in long-term pricing for a reliable energy source;

●Renewable
energy generation’s ability to utilize freely available sources of fuel, thus avoiding the risks of price volatility and market
disruptions associated with many conventional fuel sources;

●Environmental
concerns over conventional power generation; and

●Government
policies that encourage the development of renewable power, such as country, state