California Construction News staff writer
BayWa r.e. has closed financing and begun construction on the Jacumba Valley Ranch Energy Park, a large-scale solar and battery storage project in southeastern San Diego County.
The project includes 90 megawatts alternating current, or 127 megawatts direct current, of solar generation and a 70-megawatt, 280-megawatt-hour battery energy storage system. Once operational in 2026, the facility is expected to supply electricity to about 57,000 homes through San Diego Community Power.
Construction is underway following a recent groundbreaking and the issuance of full notice to proceed under the project’s construction agreement. BayWa r.e. said the battery system will provide dispatchable capacity to support grid reliability, while the project is expected to avoid about 500,000 metric tons of carbon dioxide emissions over its lifetime.
To finance construction and long-term operations, the project secured a construction-to-term loan led by Société Générale and preferred equity investments from funds managed by Wafra Inc. and Acadia Infrastructure Capital. Total funding commitments are about $416 million. The project also executed a tax credit transfer agreement with a corporate buyer.
“Breaking ground on JVR Energy Park reflects years of collaboration aimed at delivering reliable, cost-efficient energy that adds new capacity to the grid,” said Geoff Fallon, interim chief executive officer and chief operating officer of BayWa r.e. Americas.
The project is expected to create more than 350 union construction jobs through project labor agreements, with permanent operations positions to follow. BayWa r.e. said the project will also generate local economic activity and contribute property tax revenue to support public services.
BayWa r.e. has committed $4 million in direct investment to the Jacumba Valley community, guided by local and county input. The project includes a fire protection agreement dedicating five acres for a future Jacumba fire station, as well as a 435-acre biological open space easement designed to avoid sensitive habitats, wetlands and jurisdictional waters.
