BayWa r.e. has successfully secured $416 million in funding for the development of the Jacumba Valley Ranch (JVR) Energy Park in southeastern San Diego County. The project, which will feature a combination of solar energy generation and battery storage, is expected to be operational by fall 2026.
The JVR Energy Park will include 90 MWac/127 MWdc of solar capacity and 70 MWac/280 MWh of battery storage, providing reliable electricity to approximately 57,000 homes through San Diego Community Power (SDCP). Once fully operational, the facility is projected to avoid approximately 500,000 metric tons of CO₂ emissions over its lifetime. Additionally, the park’s advanced battery storage system will enhance grid stability with dispatchable capacity.
Construction at the site has officially begun following the project's groundbreaking and the issuance of a full notice to proceed under the construction agreement. Geoff Fallon, Interim CEO and COO of BayWa r.e. Americas, highlighted the collaborative effort behind the project: "Today, BayWa r.e. Americas celebrates the result of years of collaboration with our partners and stakeholders. Our team, local officials, permitting and financing partners, and our EPC and construction teams shared a clear goal: deliver a reliable, cost-efficient energy project that adds new capacity to the grid and creates lasting value for San Diego County. Breaking ground on JVR Energy Park reflects that shared effort, and we're deeply grateful to everyone who helped make it possible."
The $416 million required to fund the construction and long-term operation of the JVR Energy Park was secured through a combination of a construction-to-term loan facility and preferred equity investments. Société Générale led the loan facility, while Wafra Inc., a global alternative investment manager, and Acadia Infrastructure Capital, L.P., a North American power infrastructure investment manager, contributed preferred equity investments.
Anthony Peek, Managing Director at Wafra, emphasized the financial and community impact of the project, stating, "Our investment in JVR Energy Park demonstrates Wafra's ability to deliver creative capital solutions that advance large-scale power solutions." Ben Droz, Director at Acadia, added, "We're proud to partner with BayWa r.e. Americas on a structure that advances both financial and community outcomes in the San Diego area."
A tax credit transfer agreement with a large corporate buyer also contributed to the project’s financing strategy, further showcasing the strong investor confidence in its potential benefits.
In addition to producing clean energy, the JVR Energy Park is expected to bring significant economic benefits to the region. Over 350 union construction jobs will be created during the development phase through project labor agreements, with long-term operational roles to follow. The project will also generate labor and supply chain activity while increasing demand for local services such as lodging, dining, and fuel.
BayWa r.e. has committed $4 million in direct investments to the Jacumba Valley community, informed by input from local stakeholders, the Jacumba Community Sponsorship Group, and the County of San Diego. These investments will support initiatives such as the construction of a new fire station on five acres of project land in partnership with the San Diego County Fire Authority. The development additionally includes a 435-acre biological open space easement, taking care to avoid sensitive habitats, wetlands, and jurisdictional waters.
The project is expected to contribute significant property tax revenue over its lifetime, which will go toward funding local schools, public roads, and essential services.
With 12.8 GW in its development pipeline and a strong track record in renewable energy projects, BayWa r.e. is furthering its commitment to sustainable energy generation with the JVR Energy Park. The development serves as a critical step in addressing energy demand while promoting environmental and economic sustainability in San Diego County.
