Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 304

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1A
Chunk 304
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 PPAs or FiTs for a majority of its owned capacity. A FiT is a policy designed to support the development
of renewable energy sources by providing a guaranteed, above-market price for producers. FiTs usually involve long-term contracts, anywhere
from 15 to 20 years, whereas the PPAs that currently provide the additional revenue are typically renewed and may be terminated annually.
In countries where the price of electricity is sufficiently high such that solar parks can be profitably developed without the need for
government price supports, solar parks may choose not to enter into PPAs and would instead sell based on the spot market price of electricity.
Revenue for our solar parks in Italy and Romania could fluctuate with the electricity spot market after the expiration of any PPA, unless
it is renewed. The market price of electricity can be subject to significant fluctuations.

Decreases in the spot
price of electricity in such countries could render PV energy less competitive compared to other forms of electricity. Thus, the spot
market price of electricity may have a material adverse effect on our business, results of operations, cash flows, and financial condition.

12

Our power purchase
agreements may not be successfully completed.

Payments by power purchasers
under a PPA may provide the majority of a Subsidiary’s or a project’s cash flows. There can be no assurance that any or all
of the power purchasers will fulfill their obligations under their PPAs or that a power purchaser will not become bankrupt, or that upon
any such bankruptcy, its obligations under its respective PPA will not be rejected by a bankruptcy trustee. There are also additional
risks relating to PPAs, including the occurrence of events beyond the control of a power purchaser that may excuse it from its obligation
to accept and pay for the delivery of energy generated by the project company’s plant. The failure of a power purchaser to fulfill
its obligations under any PPA or the termination of any PPA may have a material adverse effect on the respective project or project company
and therefore on us.

The seasonality
of our Subsidiaries’ operations may materially affect our business, results of operations, cash flows, and financial condition.

The energy production
industry is subject to seasonal variations as well as other significant events. For instance, the amount of electricity and revenues generated
by our solar generation facilities is dependent in part, on the amount of sunlight, or irradiation, where the assets are located. Due
to shorter daylight hours in winter months, there is less irradi