China has started building the world’s largest hydropower dam on the eastern edge of the Tibetan Plateau. The project, costing over $170 billion, is set to become China’s most ambitious hydropower initiative since the Three Gorges Dam. This new dam is designed to generate 300 billion kilowatt-hours annually, matching the electricity consumption of the United Kingdom in 2024. It is located on the lower reaches of the Yarlung Zangbo River, where the river drops 2,000 metres over 50 kilometres, offering vast hydropower potential.
Project Overview and Capacity
The dam complex consists of five cascade hydropower stations. Together, they will harness the steep gradient of the Yarlung Zangbo River to produce enormous power output. The project aims to meet growing electricity demand in Tibet and other Chinese regions. Operations are expected to begin in the 2030s. The state-owned China Yajiang Group oversees the construction.
Economic Significance
The project is viewed as a major economic stimulus amid slowing growth in China. It has boosted the stock market, especially shares related to construction, engineering, and materials. Cement makers, tunnel equipment producers, and explosive manufacturers have seen sharp rises in share prices. The investment could add 120 billion yuan (about $16.7 billion) annually to China’s GDP during construction. Similar projects like the Three Gorges Dam created nearly a million jobs, though displacement figures are .
Environmental and Geopolitical Concerns
Environmentalists warn the dam poses serious risks to the Tibetan Plateau’s rich biodiversity. The region is ecologically sensitive and home to diverse flora and fauna. The project lies in a seismically active zone, raising safety concerns. Downstream countries, notably India and Bangladesh, fear the dam will affect water flow in the Brahmaputra River, which originates as the Yarlung Zangbo. Officials in India’s Arunachal Pradesh state warn the dam could reduce river flow by 80 per cent, impacting millions of people and agriculture downstream.
China’s Response and Ecological Measures
Chinese authorities assert the dam will not affect downstream water supplies or the environment. Premier Li Qiang called it a project of the century and stressed ecological conservation to minimise damage. The government has not disclosed displacement estimates, unlike the Three Gorges Dam, which relocated a large population. The project is part of China’s broader public investment strategy to stimulate economic growth and energy security.
Strategic and Regional Impact
The dam’s location near the India-China border adds strategic sensitivity. It may influence regional water politics and bilateral relations. The Yarlung Zangbo’s transformation into the Brahmaputra River makes it a vital transboundary water resource. This project marks challenges in balancing development, environmental protection, and international cooperation over shared rivers.
Questions for UPSC:
- Discuss the role of large hydropower projects in national economic development and environmental sustainability with examples from China and India.
- Critically examine the geopolitical implications of transboundary river dam projects in South Asia, focusing on the Brahmaputra River basin.
- Explain the challenges of balancing energy security and ecological conservation in the context of large infrastructure projects in seismically active zones.
- With suitable examples, discuss how public investment in infrastructure can act as an economic stimulus during periods of slowing growth.
