ArcLight intends to scale up its efforts in development and capacity improvement projects in the US transmission sector, according to Angelo Acconcia, president and partner for the asset manager.

ArcLight is assembling a dedicated team to pursue transmission projects and establish partnerships to increase capacity at existing infrastructure, with at least one announcement on a new development partnership expected this year, Acconcia told this publication.

“We are putting in place a highly talented transmission team with deep experience in the field,” Acconcia said.

Industry experts have warned for years that constraints on transmission capacity could limit the ability of grid operators to meet growing power demand in much of the country. But a number of challenges, including a complex multi-tiered regulatory environment, have served as barriers to investment in new transmission assets, particularly for interstate projects.

Acconcia said ArcLight’s deep visibility into US power markets, through its existing generation and midstream portfolio, will allow the asset manager to invest strategically across multiple regions of the US.

“We have resources and expertise across the United States. So, we see power flows. We see transmission congestion. And we have the ability as a generator and an owner of generation, batteries, renewables, and midstream assets to understand market dynamics and create long term transmission solutions for utilities, and for market operators,” he said.

That long term approach, he said, will help support value added partnerships with utilities, EPC companies and equipment providers, for whom a lack of long-term certainty is a fundamental challenge.

“There are more than enough opportunities for people to engage in one-off transactional relationships,” he said. “I think there are fewer opportunities to engage with the equipment providers, the EPC companies, and the utilities, on a strategic level, on a long-term basis, and on a programmatic basis. When you come at it from that perspective you have a greater ability to add value and certainty to their business plans.”

ArcLight’s approach to the sector will vary by region, Acconcia said, noting that the complex overlap of federal, state, and local authorities creates unique challenges for each individual market.

“Not all markets are created equal,” he said. “The US is a patchwork set of markets.”

Acconcia declined to name specific regions of the country where ArcLight will concentrate its development efforts. But he said the firm will look to isolate and concentrate on optimal markets for new development, while seeking out additional opportunities to optimize, repower, or reconductor existing transmission infrastructure.