Company: ALCE
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-007054
Chunk: 255

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 255
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 and policies less conducive to the development and operation of renewable energy facilities. Any reductions or modifications to,
or the elimination of, governmental incentives or policies that support renewable energy or the imposition of additional taxes or other
assessments on renewable energy, could result in, among other items, the lack of a satisfactory market for the development and/or financing
of new renewable energy projects, our abandoning the development of renewable energy projects, a loss of our investments in the projects
and reduced project returns, any of which could have a material adverse effect on our business, financial condition, results of operations
and prospects.

Development cost was $
million for the year ended December 31, 2022, due to primarily to abandoning of development of renewable energy projects in Poland.

| Project 1                      |     | $ | 10,162 |
| Miscellaneous development cost |     |   |  1,210 |
| Total                          |     | $ | 11,372 |

These costs were primarily
driven by Project 1 in Poland as a million PLN (approximately $ million) “breakup fee” applied when the Company did
not close on the project. Of the $ million due to the seller, $ million has been paid and approximately $ million is in Accrued
Liabilities on the Consolidated Balance Sheet.

Miscellaneous development cost
relates to cost associated with projects abandoned during various phases, due to lack of technical, legal, or financial feasibility.

F-32

| 20. | Discontinued Operations – Assets Held for Sale |

In July 2023, the Company engaged
multiple parties to market the Polish and Netherlands assets to potential buyers. In the fourth quarter of 2023, the Company decided
to proceed with the sales of the 6 PV parks in Poland and 1 park in the Netherlands. As the exit of these two markets represented a strategic
shift for the Company, the assets were classified as discontinued operations in accordance with ASC 205-20. As of December 31, 2023,
the Polish and Netherlands assets were classified as disposal groups held for sale. The Company sold the Polish assets on January 18,
2024 and the Netherland assets on February 21, 2024.

| Poland                                      
 Assets:                                     |     | As of December 31 
 2023              
 (in thousands)    |        |     | 2022 |        |
|:--------------------------------------------|:----|:------------------|-------:|:----|: