Home » BayWa r.e. Begins Construction on $416M JVR Energy Park in San Diego County

BayWa r.e. Begins Construction on $416M JVR Energy Park in San Diego County

Home » BayWa r.e. Begins Construction on $416M JVR Energy Park in San Diego County

BayWa r.e. has officially begun construction on Jacumba Valley Ranch (JVR) Energy Park, a large-scale solar and battery energy storage facility in southeastern San Diego County near Jacumba Hot Springs. The project follows the close of a $416 million financing package marking a major milestone for the development.

The facility will include 90 MW of photovoltaic solar generation paired with a 70 MW / 280 MWh battery storage system, allowing the project to store excess daytime solar power and supply electricity during evening peak demand. Once complete, the project is expected to provide enough clean energy to serve approximately 57,000 homes through San Diego Community Power.

Construction commenced with the close of financing, which consisted of a construction-to-term loan along with preferred equity investments from institutional partners. Commercial operations are scheduled to start in fall 2026.

Environmental protection

JVR Energy Park also incorporates environmental and community measures: It includes the development of a 435-acre biological open-space easement to protect local habitats and avoid sensitive ecological areas. BayWa r.e. has committed $4 million in local investments to support community initiatives in Jacumba Valley.

The project’s power will be sold under a 20-year power purchase agreement with San Diego Community Power, providing long-term revenue certainty for the project and helping to meet the region’s clean-energy goals.

The project is foreseen to create several hundred construction jobs during the building phase and a smaller number of permanent operations and maintenance positions once completed. By providing dispatchable renewable energy, JVR Energy Park should reduce regional carbon emissions and support grid reliability.

Construction has begun, representing a major milestone for California in the ongoing development of renewable energy resources and huge storage systems supporting a stable grid.

Across the country, large-scale renewable energy developments are emerging rapidly, reflecting the growing demand for clean and reliable power. Projects like the Catclaw Solar & Storage Facility in Buckeye, Arizona, exemplify this trend. Currently under construction, Catclaw combines utility-scale solar generation with battery storage, contributing to regional energy reliability while supporting emissions reduction goals. Developments of this scale are becoming increasingly common as states and utilities invest in renewable infrastructure to meet climate targets and growing electricity demand.

The facility will include 90 MW of photovoltaic solar generation paired with a 70 MW / 280 MWh battery storage system
The facility will include 90 MW of photovoltaic solar generation paired with a 70 MW / 280 MWh battery storage system

JVR Energy Park in San Diego County : Project Factsheet

Project Overview

Project Name: Jacumba Valley Ranch (JVR) Energy Park

Developer: BayWa r.e. Americas

Location: Southeastern San Diego County, California

Expected Operational Date: 2026

Current Status: Construction underway (groundbreaking completed)

Technical Specifications

Solar Capacity:

90 MWac / 127 MWdc photovoltaic solar generation

Battery Energy Storage System (BESS):

70 MWac / 280 MWh capacity

Provides dispatchable capacity for enhanced grid stability

Power Supply Capacity:

Approximately 57,000 homes

Offtaker:

San Diego Community Power (SDCP)

Financial Structure

Total Funding: Approximately USD 416 million

Financing Partners:

Construction-to-Term Loan: Led by Société Générale

Preferred Equity Investors:

Wafra Inc. (New York-based global alternative investment manager)

Acadia Infrastructure Capital, L.P. (North American power infrastructure investment manager)

Tax Credit Transfer: Agreement secured with large corporate buyer

Environmental Impact

Lifetime CO₂ Avoidance: Approximately 500,000 metric tons

Environmental Commitments:

435-acre biological open space easement

Avoidance of sensitive habitats, wetlands, and jurisdictional waters

Strategic siting to minimize environmental impact

Economic & Community Benefits

Job Creation:

350+ union construction jobs through project labor agreements

Long-term operational positions post-completion

Local Economic Impact:

Labor and supply chain activity generation

Increased demand for local services (lodging, fuel, dining)

Significant property tax revenue for local schools, roads, and public services

Community Investment: USD 4 million direct investment in Jacumba Valley

Directed by Jacumba Community Sponsorship Group input

Guided by County of San Diego and local resident survey feedback

Fire Protection Agreement:

Partnership with San Diego County Fire Authority

5 acres designated for new Jacumba fire station

Key Stakeholders

Developer & Operator: BayWa r.e. Americas

Power Purchaser: San Diego Community Power (SDCP)

Lead Lender: Société Générale

Equity Investors: Wafra Inc., Acadia Infrastructure Capital, L.P.

Community Partners: Jacumba Community Sponsorship Group, County of San Diego

Peter Mwaniki is a reporter covering the construction industry for Construction Review Online. He leverages his Bachelor's Degree in Journalism from Pioneer International University (PIU) to craft insightful and engaging articles for Construction Review Online, a leading online publication dedicated to the industry. Peter's work focuses on keeping readers informed about the latest trends, innovations, and challenges shaping the construction landscape. Prior to this, Peter was a freelance Journalist commercial real estate industry.

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