China Launches World’s Largest Hydropower Dam Project

Massive Yarlung Tsangpo Scheme Sparks International Concerns

China has initiated construction on what it hails as the “project of the century”—the planet’s largest hydropower megadam. The colossal structure, situated on the Yarlung Tsangpo river within Tibetan territory, was officially marked by Premier Li Qiang.

Ambitious Scale and Economic Impact

The announcement on Saturday sent Chinese markets upward, buoyed by anticipation for the megaproject first revealed in 2020 as part of China’s 14th five-year plan. According to state news outlet Xinhua, the ambitious undertaking comprises five cascade hydropower stations. These are projected to generate an immense 300 million megawatt hours of electricity annually, with an estimated cost of 1.2 trillion yuan (approximately £124 billion). For perspective, the Three Gorges Dam, previously China’s largest, cost 254.2 billion yuan and produces 88.2 million MWh.

Downstream Fears and Diplomatic Tensions

The megadam’s location in the lower reaches of the Yarlung Tsangpo river has ignited significant apprehension from India and Bangladesh, nations through which the river flows. Tibetan advocacy groups and environmental organizations have also voiced strong opposition. Concerns center on the potential for China to control or divert water resources crucial for millions downstream.

“China can always weaponise this water in terms of blocking it or diverting it.”

—Neeraj Singh Manhas, Special Adviser for South Asia at the Parley Policy Initiative

India formally lodged its objections with Beijing in December, reiterating them during bilateral meetings in January. China, however, asserts it does not seek “water hegemony” and aims for cooperation on disaster prevention and mitigation.

Tibetan Rights and Environmental Worries

Tibetan groups have highlighted the presence of sacred sites along the river, expressing alarm over the lack of clarity regarding potential population displacement. Past hydropower projects in Tibet have led to protests, often met with severe crackdowns by authorities. Last year, hundreds were detained during demonstrations against the Kamtok dam, which activists warned could displace thousands and inundate ancient Buddhist monasteries. The Three Gorges Dam’s construction is estimated to have displaced around 1.5 million people.

Environmentalists share these concerns, pointing to potential impacts on regional wildlife. They also cite the dam’s planned location within a geologically active zone known for significant tectonic shifting, severe landslides, and extreme geographical features.

China’s Renewable Energy Push

As the world’s largest carbon emitter, China is aggressively expanding its renewable energy sector to meet emissions reduction targets and stabilize its power supply. The nation operates tens of thousands of hydropower projects, more than any other country. Beijing maintains that the Yarlung Tsangpo megadam will stimulate local employment, bolster domestic energy reserves, and drive development in the renewables sector. Premier Li Qiang stressed the importance of “ecological conservation to prevent environmental damage” during the project’s launch.