Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 2

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1
Chunk 2
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long-term on a portfolio basis. This revenue mix creates high margin and long-term predictable income streams that provide us with more
flexible debt options that we deploy in ways to maximize returns on equity.

Energy-as-a-Service (EaaS) for Corporates:

The clean energy generated from our Microgrid
renewable energy facilities is delivered and consumed by corporate clients where the facilities are installed. Revenues are either booked
by multiplying the energy produced, measured in kilowatt hours (KWh), by the rate paid for these hours during the reporting period, or
a monthly fixed service fee as agreed with the client.

Sales of Turnkey Microgrid Facilities to
Clients:

Where an energy facility or project does not meet
the Company’s long-term economic criteria or where the client prefers to own the facilities directly, then Alternus books revenues
for these sales by billing the client for the full contracted capital costs plus an agreed margin once all of the criteria contained in
the sales contract are delivered. There were no turnkey sales during 2023 or 2024.

Vision and Strategy:

We are expanding beyond our core utility solar
operations by integrating microgrids and on-site generation systems that provide customers with energy resilience, grid independence,
and long-term cost savings. These customer deployed systems enable faster revenue realization and lower capital intensity compared to
utility scale projects.

To accelerate this transition, we are actively
forming strategic partnerships and pursuing targeted ventures and acquisitions in high-growth areas such as battery storage and circular
economy energy systems. These additions enhance our technical capabilities, diversify revenue streams, and strengthen our ability to meet
the rising demand for consistent power driven by AI, data centers, and industrial onshoring.

This strategy builds on our foundation as an integrated
independent power producer (IPP) with experience developing a portfolio of renewable energy assets across North America and Europe. By
owning and operating long-term contracted energy projects, we generate stable, recurring income while unlocking lasting value for shareholders.

2

With strong regulatory tailwinds and rapidly growing
global demand for sustainable and reliable energy, Alternus is well positioned to scale as a more comprehensive energy provider, broadening
our market reach, enhancing financial performance, and advancing our mission to power a cleaner, more resilient energy future.

To achieve its goals, the Company intends
to pursue the following strategies:

    ●
    Continue our growth strategy of acquiring utility scale clean energy (e.g., solar, battery storage and other technologies) projects that are either in