Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 151

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 8
Chunk 151
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 alliance agreement, whereby the Company will provide up to an additional $1,800,000
in development fees to Hover as and when development services are performed by Hover for specific Microgrid Projects. As of March 31,
2025, services had been performed by Hover for specific Microgrid Projects agreed upon by the Company and $1,750,000 is due to Hover.

13. 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 three months ended March 31, 2025 and the year ended December 31, 2024 were as follows:

    Three Months Ended
 March 31, 

    2025  
    2024 

    (in thousands) 
  
    Miscellaneous Spanish costs 
    $     - 
    $(7)
  
    Total 
    $- 
    $(7)

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

14. Discontinued Operations Sold – Poland & Netherlands

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 Poland and one park in the Netherlands. As