Chongqing - China has recently launched construction of a hydropower project in the lower reaches of the Yarlung Zangbo River in Xizang, with a total investment estimated at around 1.2 trillion yuan ($167.8 billion), according to Xinhua News.

The Yarlung Zangbo River. (Photo/IC Photo)

The Yarlung Zangbo River, located on the Tibetan Plateau in China, is the highest-altitude river in the world. It traverses the longest and steepest canyon on Earth and possesses Asia's most abundant untapped water resources. The section where the Lower Yarlung Zangbo Hydropower Project is situated has a significant drop in elevation of 2,000 meters, making it a rare treasure trove of hydropower globally.

The project involves building five cascade hydropower stations that will primarily deliver electricity for external consumption while also addressing local demand in Xizang. According to Guosheng Securities, Xizang holds around 200 GW of hydropower potential, 30% of China's total. The Yarlung Zangbo River alone accounts for 56.45 million kilowatts, or 10% of the nation's developable hydropower.

Once operating, the Yarlung Zangbo River project is expected to deliver up to 300 billion kilowatt-hours per year. Its projected output is nearly three times that of the Three Gorges Dam on the Yangtze River, China's largest hydropower station.

The project's construction phase will be large-scale and technologically demanding. According to Guosheng Securities, core components such as civil works, equipment installation, and metal structures account for around 65% of the total investment.

Cement demand is also expected to soar. The Yarlung Zangbo project may require over 40 million tons of cement, averaging 2.84 million tons annually, or about 30% of Xizang's total annual cement output in recent years.

Construction sites are located in water-rich regions with soft soil, requiring extensive ground reinforcement. Due to Xizang's unique geography and low soil permeability, the project demands advanced ground treatment technologies.

Transportation logistics are another key challenge. The project's remote location in southwest China means materials, equipment, and vehicles must be transported via highways and rail. Infrastructure projects such as the Motuo Highway and the Sichuan-Xizang and Yunnan-Xizang railways are currently underway to support the project's logistics.

The Three Gorges Dam. (Photo/IC Photo)

"The project will significantly enhance China's clean energy supply, optimize the energy mix, and contribute to the country's dual carbon goals," said Yuan Shuai, deputy secretary-general of the Zhongguancun Internet of Things Industry Alliance.

Huo Hongyi, a business consultant, said the initiative is a strategic national infrastructure that will improve the share of non-fossil energy, strengthen hydropower coordination in southwest China, and drive local industrial development and job creation.

Hydropower remains a cornerstone of China's clean energy strategy. Data from the National Energy Administration shows that by the end of 2024, the country will have operated more than 94,000 dams, ranking first globally in both number and capacity. China's total hydropower capacity reached 436 gigawatts (GW), producing 1.42 trillion kilowatt-hours annually, which accounted for 57% of the nation's renewable energy generation.

A report from the International Hydropower Association (IHA) released on June 25 stated that in 2024, the world added 24.6 GW of new hydropower, of which 14.4 GW, or nearly 60%, came from China. More than half of China's increase came from pumped storage, which added 7.75 GW.

Hydropower continues to play a central role in global low-carbon energy, according to a report from the International Energy Agency (IEA), which states it supplies nearly half of the electricity worldwide. Since the 1970s, emerging economies have driven growth through large-scale public investments, while developed countries have seen a decline in hydropower's share, with infrastructure aging, averaging 50 years in North America and 45 in Europe. The IEA forecasts China will remain the world's largest hydropower market through 2030.

Huo also noted that hydropower is shifting from "volume-based" to "system-based" energy sources. "It will take on multiple roles in peak shaving, energy storage, and frequency regulation in integrated systems combining hydro, wind, solar, and storage," he said.

The project has raised concerns over its potential impact on millions of residents downstream in India and Bangladesh. According to AFP, India's government voiced its concerns in January, urging China to ensure that activities in the upstream region would not harm downstream countries. Indian Ministry of External Affairs spokesperson Randhir Jaiswal said, "We will continue to monitor and take necessary measures to protect our interests."

In December, China's Ministry of Foreign Affairs responded that the project would not negatively affect downstream regions and emphasized that it would maintain communication with neighboring countries.

On April 19, during an interview with The Times of India, China's Ambassador to India, Xu Feihong, stated that China follows a responsible approach to cross-border river development. He emphasized that the project is intended to boost clean energy development and help address climate change and extreme water-related disasters. China and India will soon hold another round of expert-level discussions on the issue in New Delhi.