Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 210

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 210
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 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 sold by Company renewable energy facilities. The volume of electricity generated and sold by the Company’s
renewable energy facilities during a particular period is impacted by the number of facilities that have achieved commercial operations,
as well as both scheduled and unexpected repair and maintenance required to keep its facilities operational.

The costs the Company incurs to operate, maintain,
and manage renewable energy facilities also affect the results of operations. Equipment performance represents the primary factor affecting
the Company’s operating results because equipment downtime impacts the volume of the electricity that the Company can generate from
its renewable energy facilities. The volume of electricity generated and sold by the Company’s facilities will also be negatively
impacted if any facilities experience higher than normal downtime as a result of equipment failures, electrical grid disruption or curtailment,
weather disruptions, or other events beyond the Company’s control.

Seasonality and Resource Variability

The amount of electricity produced and revenues
generated by the Company’s solar generation facilities is dependent in part on the amount of sunlight, or irradiation, where the
assets are located. As shorter daylight hours in winter months result in less irradiation, the electricity generated by these facilities
will vary depending on the season. Irradiation can also be variable at a particular location from period to period due to weather or other
meteorological patterns, which can affect operating results. As most of the Company’s solar power plants are in the Northern Hemisphere,
the Company expects its current solar portfolio’s power generation to be at its lowest during the first and fourth quarters of each
year