Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1845

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 5
Chunk 1845
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    Disposals 
     (235)
  
    Accretion expense 
     24 
  
    Foreign exchange gain/(loss) 
     11 
  
    ARO Liability -- December 31, 2023 
    $197 

    18.
    Development Cost

The Company depends heavily on government policies
that support our business and enhance the economic feasibility of developing and operating solar energy projects in regions in which we
operate or plan to develop and operate renewable energy facilities. The Company can decide to abandon a project if it becomes uneconomic
due to various factors, for example, a change in market conditions leading to higher costs of construction, lower energy rates, political
factors or otherwise where governments from time to time may review their laws and policies that support renewable energy and consider
actions that would make the laws and policies less conducive to the development and operation of renewable energy facilities, or other
factors that change the expected returns on the project. 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 costs related
to abandoned projects for the year ended December 31, 2024 and 2023 were as follows:

    Year Ended December 31 

    2024  
    2023 

    (in thousands) 
  
    Miscellaneous Spanish costs 
    $(314) 
    $- 
  
    Miscellaneous United States costs 
     (434) 
     (163)
  
    Miscellaneous Irish costs 
     -  
     (635)
  
    Total 
    $(748) 
    $(798)

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

F-39

    19.
    Discontinued Operations

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 six PV parks in