Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 6

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1
Chunk 6
---
 transatlantic footprint, project funding structures (e.g., tax equity, ITCs), and flexible ownership/sale strategies to de-risk execution 

Alternus secures pipeline by entering early into
project development stages, partnering with niche and local developers, and locking in acquisition rights via strategic agreements such
as right-of-first refusal (ROFR) contracts. These strategies reduce exposure to high competition bidding for operational assets, where
institutional capital typically dominates.

Although the clean energy market is increasingly
crowded, it remains highly fragmented. Most geographies, especially in the microgrid and distributed generation space, lack consolidation.
With its public company status, strong governance, and capital-efficient model, Alternus is positioned to pursue selective M&A and
joint ventures, particularly in underserved markets or adjacent technologies, enabling further strategic differentiation.

While competition is expected to intensify as
markets mature and renewable energy targets are approached, the Company believes its diversified strategy, operational flexibility, and
strategic focus provide sustainable competitive advantages for long-term growth and resilience.

Nevertheless, the Company expects to face increased
competition in all aspects of its business, target markets and industry segments, financing options, and partner availability as markets
mature as countries reach their targeted renewable energy generation.

The Market

The global energy landscape is undergoing a significant
transformation, with renewable energy solutions gaining increasing prominence. The world’s appetite for energy is rising at an accelerated
pace, primarily driven by the power sector to meet the increasing demands of cooling, industrial consumption, the electrification of transportation,
and the burgeoning growth of data centers and artificial intelligence.1 This surge in demand necessitates a fundamental shift
in how energy is generated and supplied. Traditional reliance on fossil fuels is increasingly unsustainable due to environmental concerns
and the finite nature of these resources, positioning renewable energy as a critical and viable alternative.

1Global
Energy Review 2025 – Analysis - IEA, accessed May 1, 2025, https://www.iea.org/reports/global-energy-review-2025

5

Projections indicate that renewable sources are
on track to meet almost half of the global electricity demand by the end of this decade, with solar power taking the lead in this remarkable
expansion.2 This signifies a major restructuring of the global power mix, underscoring the increasing cost-competitiveness
and overall viability of renewable energy technologies. The International Energy Agency (IEA) projects that global renewable electricity
generation is forecast to climb to over 17,000 teraw