China Launches Construction of World’s Largest Hydropower Dam in Tibet

China Launches Construction of World’s Largest Hydropower Dam in Tibet

Business Daily

Published : 21:10, 21 July 2025

China has begun construction of what will be the world’s largest hydropower dam on the lower reaches of the Yarlung Zangbo River in Tibet. This massive project, considered a milestone in China’s renewable energy ambitions, is located in Nyingchi, a region bordering India’s Arunachal Pradesh. The hydropower scheme will include five cascade dams connected through tunnels along a steep 50-kilometer drop in the river’s course. With an estimated investment of approximately 1.2 trillion yuan (around US $170 billion), the dam is expected to generate about 300 billion kilowatt-hours of electricity annually once completed in the early 2030s. This output would be nearly triple that of the Three Gorges Dam, currently the largest in the world. China views the dam as a critical element in its efforts to reduce carbon emissions, stabilize energy supply, and promote development in Tibet. Authorities claim it will bring economic opportunities and infrastructure to the region while minimizing environmental and social disruption. However, the project has raised concerns among downstream nations, particularly India and Bangladesh, over potential impacts on water flow, agriculture, and ecological balance. Some Indian experts have described the dam as a strategic risk and a possible water security challenge. Environmental groups and Tibetan activists have also voiced fears over threats to biodiversity, geological stability, and cultural heritage in the fragile Himalayan ecosystem. The project has sparked debate over seismic risks and the displacement of local communities, with calls for greater transparency and cross-border water-sharing agreements. Despite these concerns, Chinese markets have reacted positively to the news, with related construction and engineering stocks showing strong gains. As construction progresses, the dam is set to become not only a feat of engineering but also a focal point in regional geopolitics and environmental policy.

Sources

Reuters, The Guardian, Indian Express, BBC News

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