Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 322

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1A
Chunk 322
---
 other advisers to comply with the laws and regulations of each jurisdiction in which we have operations,
there may be instances of non-compliance, which may result in fines, sanctions and other penalties against the non-complying subsidiaries
and its directors and officers. For example, in 2020, the Company’s Romanian subsidiary, LJG Green Source Energy Beta S.r.l. had
an ANRE investigation resulting from actions of the previous owner related to the breach of Article 5 of the EU Regulation No.
1227/2011 on wholesale energy market integrity and transparency by engaging in market manipulation or attempted market manipulation on
the wholesale energy markets following transactions concluded between January 1, 2019 to March 31, 2020. This investigation
resulted in a penalty of RON 400,000 (approximately $80,000). We cannot make any assurances that other instances of non-compliance will
not occur in the future which may materially and adversely affect its business, financial condition or results of operations.

In order to develop solar
power projects, we must obtain a variety of approvals, permits and licenses from various authorities. The procedures for obtaining such
approvals, permits and licenses vary from country to country, making it onerous and costly to track the requirements of individual localities
and comply with the varying standards. Moreover, sovereign states retain the power to adjust their energy policies and alter approval
procedures applicable to the Company. If the regulatory requirements become more stringent or the approval process becomes less efficient,
the key steps in our business operations including project development, facility upgrading and product sales, could be severely disrupted
or delayed. Failure to obtain the required approvals, permits or licenses or to comply with the conditions associated therewith could
result in fines, sanctions, suspension, revocation or non-renewal of approvals, permits or licenses, or even criminal penalties, which
could have a material adverse effect on the Company’s business, financial condition and results of operations.

Any new government regulations
pertaining to the Company business or solar power projects may result in significant additional expenses. The Company cannot assure that
it will be able to promptly and adequately respond to changes of laws and regulations in various jurisdictions, or that its employees
and contractors will act in accordance with such laws. Failure to comply with laws and regulations where the Company develops, constructs
and operates solar power projects may materially and adversely affect our business, results of operations and financial condition.

23

Existing rules,
regulations and policies pertaining to electricity