Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 343

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1A
Chunk 343
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 fuel (for example, natural gas) that is used to
generate electricity; the management of generation and the amount of excess generating capacity relative to load in a particular market;
the cost of controlling emissions of pollution, including the cost of emitting carbon dioxide; the structure of the electricity market;
and weather conditions (such as extremely hot or cold weather) that impact electrical load. More generally, there is uncertainty surrounding
the trend in electricity demand growth, which is influenced by: macroeconomic conditions; absolute and relative energy prices; and energy
conservation and demand-side management. Correspondingly, from a supply perspective, there are uncertainties associated with the timing
of generating plant retirements — in part driven by environmental regulations — and with the scale,
pace and structure of replacement capacity, again reflecting a complex interaction of economic and political pressures and environmental
preferences. This volatility and uncertainty in the power market generally, including the non-renewable power market, could have a material
adverse effect on our assets, liabilities, business, financial condition, results of operations and cash flows.

The ability to
deliver electricity to our various counterparties requires the availability of and access to interconnection facilities and transmission
systems.

Our ability to sell electricity
is impacted by the availability of, and access to, the various transmission systems to deliver power to our contractual delivery point
and the arrangements and facilities for interconnecting the generation projects to the transmission systems. The absence of this availability
and access, our inability to obtain reasonable terms and conditions for interconnection and transmission agreements, the operational failure
or decommissioning of existing interconnection facilities or transmission facilities, the lack of adequate capacity on such interconnection
or transmission facilities, curtailment as a result of transmission facility downtime, or the failure of any relevant jurisdiction to
expand transmission facilities, may have a material adverse effect on our ability to deliver electricity to its various counterparties
or the requirement of counterparties to accept and pay for energy delivery, which could materially and adversely affect our assets, liabilities,
business, financial condition, results of operations and cash flows.

We may pursue acquisitions
that involve inherent risks related to potential internal control weaknesses and significant deficiencies which may be costly for us to
remedy and could impact management assessment of internal control effectiveness.

Although our independent
registered public accounting firm will not be required to formally attest to our internal control effectiveness while we are a smaller
reporting company, management is still responsible for assessing internal control effectiveness at a consolidated level.