The dam will be built on the Yarlung Zangbo River, with a dramatic 2,000-metre drop.
China has launched construction of what will become the world’s biggest hydropower dam, located on the eastern edge of the Tibetan Plateau. The project, announced by Premier Li Qiang and confirmed by Xinhua News Agency, is set to cost around $170 billion—making it China’s largest hydropower initiative since the Three Gorges Dam.
The mega-dam will sit on the lower part of the Yarlung Zangbo River, where the river drops a steep 2,000 meters over just 50 kilometres. Engineers plan to build five cascading stations to harness the river’s powerful current, with expectations of generating about 300 billion kilowatt-hours of electricity each year. This output is meant to power development in Tibet and other regions.
“Special emphasis must be placed on ecological conservation to prevent environmental damage,” Premier Li Qiang stated.
Despite promises of eco-protection, the project has drawn criticism. India and Bangladesh, downstream neighbours of the river (called Brahmaputra in India), fear the dam could affect water flow and impact millions of lives. Environmental groups like the International Campaign for Tibet warn of long-term damage to one of the world’s most biodiverse regions.
China insists the dam will not significantly affect downstream ecosystems and has not yet disclosed any population displacement figures or completed environmental assessments.
News of the project sent Chinese construction and engineering stocks soaring. The CSI Construction & Engineering Index rose 4% to its highest point in seven months. Key firms like Power Construction Corporation of China and Arcplus Group PLC hit 10% gains. Tunnel tech suppliers like Hunan Wuxin Tunnel and Geokang Technologies surged by 30%.
Companies tied to raw materials such as Xizang Tianlu Co (cement) and Tibet GaoZheng Explosive Co (civil explosives) also maxed out their daily limits in trading.
“The dam offers long-term investment opportunities,” noted Wang Zhuo of Shanghai Zhuozhu Investment, while warning against speculative overpricing.
Construction is expected to take several years, with operations beginning in the 2030s. Many unanswered questions remain, particularly over environmental impact and possible displacement of local communities, issues that shadowed the earlier Three Gorges Dam project.
As work moves forward, this bold move in energy development will continue to draw close global attention.
