China has started the construction of what will be the world’s largest hydropower dam in the country.
China’s Premier Li Qiang, on Sunday, July 20, 2025, announced the construction of the hydropower dam, located on the eastern rim of the Tibetan Plateau and estimated to cost around $170 billion.
The dam is China’s most ambitious hydropower project since the Three Gorges Dam on the Yangtze, with operations expected sometime in the 2030s.
Made up of five cascade hydropower stations, the dam will be located in the lower reaches of the Yarlung Zangbo. A section of the river falls a dramatic 2,000 metres (6,561 feet) within a short span of 50 km (31 miles), offering huge hydropower potential.
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India and Bangladesh have already raised concerns about its possible impact on the millions of people who live downstream, while NGOs have warned of the risk to the environment, one of the richest and most diverse on the Plateau.
Beijing has said the dam, with the capacity to produce 300 billion kilowatt-hours of electricity annually, will help meet power demand in Tibet and the rest of China without having a major effect on downstream water supplies or the environment.
China’s CSI Construction & Engineering Index jumped as much as 4% to a seven-month high. Power Construction Corporation of China and Arcplus Group Plc jumped by their 10% daily limit, Reuters reported.
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