Company: ALCE
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-007054
Chunk: 126

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 126
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 that then accumulates each time. Other participants in our market sometimes ‘build-to-sell’ the projects they develop and/or install, making their annual numbers more one-time and volatile. Our business model is designed to steadily add long-term income, locking in sustainable returns and value for shareholders as we stair step up growth. Notwithstanding this core focus, Alternus retains the option to sell certain assets at a profit that would be immediately accretive to both income and cash and therefore reduce the need to issue additional equity to public markets to support the business. 85 Organization structured as focused expert teams and partners In order to maximize the value created from this integrated project approach, Alternus is currently structured into three operating groups, reflecting each of the project development phases — development, installation, operation. Each operating group brings decades of experience and expertise to their respective segment and allows them to operate independently as required, to achieve greatest cost efficiencies and market focus, but with the coordination and support of a larger organization behind them. The operating groups are supported by specialist in-country management and corporate functions to ensure best overall collaboration to a common goal of long-term project ownership across multiple countries. Revenue model Alternus has a straight-forward revenue model. The clean energy created from our renewable assets parks is delivered directly to national utility power grids. Revenues are generated by multiplying the energy produced – measured in megawatt hours (MWh) – by the rate received for these hours. The rates received from either local government or investment grade commercial customers are either contracted under long term contracts – up to 25 years – or from local energy markets at the rates prevailing as the energy is delivered. At any one time, Alternus aims to have approximately 70% of the energy rates contracted long term on a portfolio basis. This revenue mix approach creates high margin and long-term predictable income streams that provides us with more flexible debt options that we deploy in ways to maximize returns on equity. On the planned completion of the Joint Venture with Hover, the Company will enter a new market segment that will have two modes of operation. the same revenue model focus over the long term, but also may sell some or all of the ownership of the installations to third parties to own. In that case, the joint venture would book the initial sale Vision and Strategy Alternus aims to become a comprehensive provider of clean energy and energy solutions in Europe and the US with the overall aim of delivering power to our customers 24 hours 7 days a week, 365 days of the year – or 8760 hours per