Summary:
- China begins construction on the world’s largest hydropower dam on the Yarlung Tsangpo River in Tibet, near the Indian border, with an estimated cost of $167 billion.
- The dam will comprise five cascading hydropower stations and generate 300 billion kilowatt-hours annually—triple the output of the Three Gorges Dam.
- Approximately 90% of the electricity will be transmitted to China’s eastern and central provinces, aligning with national carbon targets and fostering Tibetan development.
- India and Bangladesh have expressed concerns about water flow disruption and ecological impacts on the Brahmaputra River.
- Chinese authorities say the dam nurtures green energy goals and economic growth, calling for transparency and cooperation in response to geopolitical sensitivities.
- The dam escalates the complexity of India-China relations due to its location in a contested, militarized zone, with commercial operations expected by 2033.
China has launched construction on what is set to become the world’s largest hydropower dam, a massive infrastructure project on the Yarlung Tsangpo River in Tibet that is already reverberating across South Asia. Premier Li Qiang presided over the groundbreaking ceremony on July 19 in Tibet’s Nyingchi region, not far from the boundary with the Indian state of Arunachal Pradesh. With an estimated cost of 1.2 trillion yuan (approximately $167 billion), the project is one of the most ambitious hydroelectric undertakings in modern history.
According to Chinese authorities, the dam will eventually comprise five cascading hydropower stations positioned along a dramatic 2,000-meter drop in the river’s elevation over a 50-kilometer stretch. Once operational, it is expected to generate 300 billion kilowatt-hours of electricity annually—around three times the output of the Three Gorges Dam and roughly equivalent to the United Kingdom’s annual energy consumption.
“It’s a landmark for our westward energy strategy and a cornerstone of green development in the Tibetan Autonomous Region,” said an unnamed spokesperson from the project’s planning committee, as cited by local media. The generated power will primarily be transmitted to China’s eastern and central provinces, with estimates suggesting that nearly 90% of the electricity will be exported out of Tibet.
The choice of location has drawn close scrutiny. The Yarlung Tsangpo becomes the Brahmaputra River once it crosses into India, flowing through Arunachal Pradesh and Assam before entering Bangladesh. Both India and Bangladesh have expressed concerns over potential disruptions to water flow and the ecological impact of such a large-scale intervention on a Himalayan river system renowned for its seismic instability and environmental sensitivity.
“We are watching the developments very closely,” an Indian foreign ministry official noted, emphasizing the need for transparency and regional cooperation whenever river systems cross national boundaries. Officials in Dhaka have also voiced worry, particularly about how the dam might affect water availability during dry seasons, given the Brahmaputra‘s importance for agriculture and fisheries downstream.
In response to such concerns, Chinese officials have reiterated the project’s importance to national carbon reduction goals and regional development. They argue that the dam will help accelerate the transition to cleaner energy sources, reduce reliance on fossil fuels, and provide much-needed economic stimulus to Tibet.
“The project supports renewable energy goals and contributes to the national strategy of achieving carbon neutrality,” said a representative of the State Power Investment Corporation, which is overseeing construction.
Set in a remote, mountainous region often referred to as a geopolitical flashpoint, the dam’s construction adds another layer of complexity to already sensitive relations between China and its southern neighbors. The Nyingchi area lies within a region where both India and China have heightened military presence in recent years, underscoring the overlapping concerns of infrastructure development, environmental stewardship, and territorial disputes.
The project is scheduled to begin commercial operations by 2033, according to officials familiar with the planning timeline. Until then, its progress will likely remain under tight regional scrutiny, balancing promises of energy and economic growth with fears of unintended environmental and political consequences.
Background:
Here is how this event developed over time:
- July 19, 2025: Chinese Premier Li Qiang officiated the groundbreaking ceremony for the Yarlung Tsangpo hydropower project in Nyingchi, Tibet.
- July 2025: Construction began on what will become the world’s largest hydropower dam, situated near the Indian border on the Yarlung Tsangpo River, known downstream as the Brahmaputra.
- July 2025: China announced the dam will consist of five cascading hydropower stations and require an estimated investment of 1.2 trillion yuan (~$167 billion).
- July 2025: The project is designed to generate 300 billion kilowatt-hours of electricity annually, three times more than China’s existing Three Gorges Dam.
- July 2025: Completion is scheduled for 2033, with most power destined for eastern China’s industrial zones.
- July 2025: India and Bangladesh raised concerns about water flow disruptions and regional security implications resulting from the upstream dam.
- July 2025: Environmental experts warned of seismic risks, ecological damage, and engineering complexities due to the location within an earthquake-prone zone.
- July 2025: Chinese authorities defended the project as a means to promote renewable energy, achieve carbon neutrality targets, and boost economic development in Tibet.