Last Updated: Jul 31, 2025
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Construction of the Tibet Dam, the World’s Largest Hydropower Project

Home » Energy » Hydropower » Construction of the Tibet Dam, the World’s Largest Hydropower Project

China has set its sights on building the world’s largest hydropower station — the Tibet Dam — an ambitious project that will dwarf the iconic Three Gorges Dam in scale and power generation. It will also be larger than the planned Grand Inga Dam across the Congo River in Africa which was slated to become the largest Hydro dam when constructed.

When completed, the Tibet Dam is expected to produce three times more electricity than the Three Gorges Dam, which has held the record as the world’s largest hydropower facility since it began operations in 2012.

The new mega-dam will harness the force of the Yarlung Tsangpo River, which flows through the world’s deepest canyon. Dropping more than 25,000 feet (7,667 meters) from its source, the river’s dramatic elevation provides enormous potential for clean energy production.

Engineers estimate the project could generate nearly 300 billion kilowatt-hours (kWh) of electricity every year — enough to supply power to around 300 million people. Just one stretch of the river’s lower reaches drops over 6,500 feet (2,000 meters) in only 31 miles (50 kilometers), offering the potential to produce up to 70 million kilowatts of power on its own.

To tap into this energy, China plans to bore a network of tunnels — some stretching up to 12.5 miles (20 kilometers) — through the Namcha Barwa mountains. These tunnels will divert about half of the river’s flow, channeling roughly 2,000 cubic meters of water per second toward massive turbines.

Cost of the Project

With an estimated budget of one trillion yuan (about US$137 billion), the Tibet Dam ranks among the most expensive and technically challenging infrastructure projects ever attempted.

Chinese Premier Li Qiang officially announced the project’s launch in July 2025, confirming its location on the lower reaches of the Yarlung Tsangpo River on the Tibetan Plateau. This came after the government of China had greenlighted the project at the end of 2024.

While the dam promises unprecedented clean energy capacity, it has also raised serious concerns about environmental impacts and water supply risks for downstream countries like India and Bangladesh, which depend on the river’s flow.

Project Factsheet

Location: it is located in the lower reaches of the Yarlung Tsangpo River. This is near the “Great Bend” in Medog County, Nyingchi (Linzhi) Prefecture in the Tibet Autonomous Region, China. This location is strategically close to the Line of Actual Control (LAC) with India.

Capacity:it is exotic to have a capacity of up to 60 Gigawatts (GW). This is similar to an annual capacity of 300 billion kilowatt-hours (kWh).

Cost: approximately more than $137 billion

Developer/operator: Power Construction Corporation of China (PowerChina). They  will be in partnership with the Tibet Autonomous Region government. Also, a new company, China Yajiang Group, has been unveiled to oversee the project.

Funding: The project will be primarily funded by the Chinese government. Also, it will have significant investment from state-owned entities like PowerChina and the newly established China Yajiang Group.

Groundbreaking Ceremony

Li attended the dam’s groundbreaking ceremony that was held in Nyingchi. Nyingchi is a southeastern city in the Tibet autonomous region as reported by state news agency Xinhua on Saturday.

The Yarlung Tsangpo becomes the Brahmaputra River once it leaves Tibet and flows south into India’s Arunachal Pradesh and Assam states. Finally, the river flows into Bangladesh.

Official Announcement of the Project

Additionally, Beijing first made an announcement on the plans for the dam in 2020 under its five-year plan. This was part of a broader strategy by China to exploit the hydropower potential of the Tibetan Plateau. Furthermore, the plan was given a greenlight last December.

The Tibet Dam project is said to be the largest of its kind in the world. The dam is estimated to posses an annual capacity of 300 billion kilowatt-hours of electricity . Lastly, this project is deemed to be three times that of the Three Gorges Dam.

Also read: Beyond Limits: “The Three Gorges Dam Above Earth” Project Unveiled by China

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