Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 28

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1
Chunk 28
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ial expenses, and financial losses beyond the scope or limits of our insurance coverage.
These consequences of a failure of security measures could, individually or in the aggregate, have a material adverse effect on our business,
NAV, financial condition, and results of operations.

18

Terrorists have attacked
energy assets such as substations and related infrastructure in the past and may attack them in the future. We cannot guarantee adequate
protection from such attacks on our projects and have little or no control over the facilities of third parties on which our projects
rely. Attacks on our or our counterparties’ assets could severely damage our projects, disrupt business operations, result in loss
of service to offtakers, and require significant time and expense to repair. Additionally, energy-related facilities, such as substations
and related infrastructure, are protected by limited security measures, in most cases only perimeter fencing. Our current portfolio, as
well as projects we may develop or acquire and the facilities of third parties on which our projects rely, may be targets of burglary,
terrorist acts and affected by responses to terrorist acts, each of which could fully or partially disrupt our projects’ ability
to produce, transmit, transport, and distribute energy. To the extent such acts constitute force majeure events under our PPAs or interconnection
agreements, the applicable offtaker generally may reduce or cease making payments to us and may terminate such PPA or interconnection
agreement if such force majeure event continues for a period typically ranging from six to twelve months as specified in the applicable
agreement. We are also generally unable to, or do not, obtain insurance coverage to compensate us for losses caused by terrorist or other
similar attacks. As a result, any such attack could significantly decrease revenues, result in significant reconstruction or remediation
costs, or otherwise disrupt our business operations, any of which could have a material adverse effect on our business, NAV, financial
condition, and results of operations.

Our holding companies
have historically entered into multiple transactions with their affiliates. These transactions include financial guarantees and other
credit support arrangements, including letters of comfort to such affiliates pursuant to which the holding companies undertake to provide
financial support to these affiliates and adequate resources as required to ensure that they are able to meet certain liabilities and
local solvency requirements. These holding companies are currently party to many such affiliate transactions, and it is likely they will
enter into new and similar affiliate transactions in the future.

In the event that any
of