Infrastructure

World’s Largest Hydropower Dam Makes Waves in Tibet

The Tibet Dam is set to outsize the legendary Three Gorges Dam.

Updated on

September 4, 2025

Construction has officially begun on the Tibet Dam along the Yarlung Zangbo River in southeastern Tibet, which is expected to be the largest hydropower dam in the world.

Premier Li Qiang hailed it as a “project of the century,” adding that “special emphasis must be placed on ecological conservation to prevent environmental damage.”

The massive dam, located near the “Great Bend” in Medog County, Nyingchi, lies close to the Line of Actual Control with India. It will feature five cascade hydropower stations with a combined capacity of 60 gigawatts—enough to generate 300 billion kilowatt-hours annually, roughly matching Britain’s yearly electricity consumption.

Construction is expected to continue into the 2030s.

The project, overseen by the newly established China Yajiang Group in partnership with Power Construction Corporation of China and the Tibet Autonomous Region government, has a price tag of more than $170 billion. The initiative is seen as a major economic stimulus.

Following the announcement of the project’s commencement, shares of Chinese construction and materials companies surged, with Beijing-listed Hunan Wuxin Tunnel Intelligent Equipment Co jumping 30% and cement maker Xizang Tianlu Co rising 10%.

“From an investment perspective, mature hydropower projects offer bond-like dividends,” said Wang Zhuo, partner at Shanghai Zhuozhu Investment Management, while cautioning that speculative buying could inflate valuations.

While Beijing insists the dam will supply China’s power needs without significantly affecting downstream water, India and Bangladesh have raised serious concerns.

As the Yarlung Zangbo flows into India’s Arunachal Pradesh and Assam, becoming the Brahmaputra, it could see up to 80% of its flow reduced, with downstream areas at risk of flooding, warned Arunachal Pradesh chief minister Pema Khandu.

Conservationists have cited threats to one of the plateau’s richest and most diverse ecosystems. Seismic hazard is a concern, with experts saying that building such a huge structure in an earthquake zone could be catastrophic.

The Tibet site offers massive hydropower potential along a 50-kilometre stretch of river dropping 2,000 metres. Power will be generated, but also demand for construction materials such as cement and explosives will be created, providing a short-term economic boost.

Citi estimated that, assuming a ten-year construction period, the project could add $16.7 billion to China’s Gross Domestic Product in a single year.

Upon completion, the Tibet Dam will surpass even the Three Gorges Dam as China’s most ambitious hydropower project, raising questions about environmental stewardship and downstream water security.