BayWa r.e. secures $416M for Jacumba Valley solar and storage project

In a significant development for renewable energy in California, a major project has secured the necessary financing to move forward. Scheduled to become operational by 2026, the Jacumba Valley Ranch Energy Park promises to deliver clean energy to tens of thousands of homes in the San Diego area.

Project Overview

BayWa r.e. has finalized the financing for the Jacumba Valley Ranch Energy Park, a substantial renewable energy initiative located in southeastern San Diego County, California. This project will feature a 90 MW solar power component alongside a 70 MW / 280 MWh battery energy storage system.

Expected to supply power to around 57,000 homes through San Diego Community Power, the facility is anticipated to start operations in the fall of 2026. The initiative aims to significantly reduce carbon emissions, projecting an avoidance of approximately 500,000 metric tons of CO₂ over its lifespan.

Financial and Construction Details

Construction has already commenced, with the project benefiting from a construction-to-term loan facility led by Société Générale. Additionally, preferred equity investments have been secured from Wafra Inc., a global alternative investment manager, and Acadia Infrastructure Capital, L.P.

The total funding commitment for the Jacumba Valley Ranch stands at about $416 million. BayWa r.e. has entered into a tax credit transfer agreement with a large corporate buyer, further enhancing the financial viability of the project.

Economic and Community Impact

The construction phase is projected to create approximately 350 union jobs through labor agreements. The project will leave a lasting legacy with a few long-term operational roles and a $4 million direct investment into the Jacumba Valley community. This investment is guided by input from local entities and a resident survey.

Community benefits include a new Jacumba fire station on five acres of project land, a 435-acre biological open space easement, and careful planning to avoid environmentally sensitive areas.

Company Background

BayWa r.e. is a leader in renewable energy with a development pipeline of 12.8 GW and management of over 1.5 GW of operational assets in the U.S. and Mexico. The company has successfully brought over 2 GW online since 2014, underscoring its significant role in the renewable energy sector.