Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 31

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1
Chunk 31
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, construction
and labor.

We procure supplies for
solar park construction, such as PV modules and balance-of-system components, from third-party suppliers. We typically enter into contracts
with its suppliers and contractors on a project-by-project basis or a project portfolio basis. We generally do not maintain long-term
contracts with its suppliers. Therefore, are exposed to fluctuations in prices for its PV modules and balance-of-system components. Increases
in the prices of PV products or balance-of-system components or fluctuations in design, construction, labor and installation costs may
increase the cost of procuring equipment and engaging contractors and hence materially and adversely affect its results of operations.

Refurbishment of
renewable energy facilities involve significant risks that could result in unplanned power outages or reduced output.

Our facilities may require
periodic upgrading and improvement. Any unexpected operational or mechanical failures, such as the failure of a single inverter, or other
failures associated with breakdowns and forced outages generally, and any decreased operational or management performance, could reduce
its facilities’ generating capacity below expected levels, reducing its revenues. Unanticipated capital expenditures associated
with upgrading or repairing its facilities may also reduce our profitability.

We may also choose to
refurbish or upgrade its facilities based on its assessment that such activity will provide adequate financial returns and key assumptions
underpinning a decision to make such an investment may prove incorrect, including assumptions regarding construction costs, timing, available
financing and future power prices. This could have a material adverse effect on our business, financial condition, results of operations
and cash flows.

20

Moreover, spare parts
for solar facilities and key pieces of equipment may be hard to acquire or unavailable to us. Sources of some significant spare parts
and other equipment are located outside of the jurisdictions in which it operates. Suppliers of some spare parts have filed, or may in
the future file for, bankruptcy protection, potentially reducing the availability of parts that it requires to operate certain of its
power generation facilities. Other suppliers may for other reasons cease to manufacture parts that it requires to operate certain of its
power generation facilities. If we were to experience a shortage of or inability to acquire critical spare parts, it could incur significant
delays in returning facilities to full operation, which could negatively impact its business financial condition, results of operations
and cash flows.

Our project operations
may be adversely affected by weather and climate conditions, natural disasters and adverse work environments.

We may operate in areas
that are under the threat