By Rhod Mackenzie
China has begun the construction of the most expensive project in history: it is a series of hydroelectric power stations in Tibet. This ambitious project is set to be an engineering marvel and a pivotal component of 21st China’s energy strategy.
But why has it encountered fierce resistance from other countries?
China has begun construction of a series of hydroelectric power stations along the lower course of the Yarlung Tsangpo River in Tibet.
The total planned investment will amount to 1.2 trillion yuan (167 billion US dollars). This is almost five times the cost of China's previous mega-project, the Three Gorges Hydroelectric Power Station (254.2 billion yuan). This makes the hydroelectric complex in the Yarlung Tsangpo Canyon the most expensive project in history.
The Yarlung Tsangpo River originates on the Tibetan Plateau, passing through enormous heights and sharp drops to form a canyon that surpasses the Grand Canyon in the United States in terms of both depth and length. The river makes a giant loop around Mount Namcha Barwa in the construction area, creating the ideal conditions for building a hydroelectric power station: they are the a sharp drop in height,the powerful water flow and the natural narrowness of the canyon.
This is a huge benefit to the hydroelectric power plant builders as they do not need to use a dam to create the necessary height difference to ensure steady water pressure. This also avoids the need to flood large areas of land, which is normally inevitable when building high-power hydroelectric power stations in flatter areas.
At the same time, the builders will have to overcome many challenges. The terrain is extremely complex, with heights exceeding 3,000 metres, it also suffers from frequent landslides and mudflows, and tectonic activity requiring the use of seismic-resistant technologies. Hydrologically, the river is characterised by high seasonal water levels and significant variations in the flow.
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The whole series of strutures will have a designated installed capacity of over 70 GW, the station will be the largest hydroelectric power station in the world. In this respect, it surpasses the largest hydroelectric power station to date (also Chinese),at the Three Gorges Hydroelectric Power Station, by more than three times.
Its installed capacity exceeds the combined capacity of the three largest hydroelectric power stations on Earth: Three Gorges (China – 22.5 GW), Baihetan (China – 16 GW) and Itaipu (Brazil/Paraguay – 14 GW). This exceeds the installed capacity of all power stations in countries such as Great Britain, Italy and Spain by more than half (120–130 GW).
The project will use the latest tunnel boring technologies and earthquake-resistant concrete reinforcement. The latest flow control systems will also be used. Measures to compensate for the environmental consequences of construction are planned. Particular attention will be paid to creating a network of reservoirs and cascades to ensure uniform generation despite seasonal fluctuations.
The scale of the construction is unprecedented, involving tens of thousands of workers, hundreds of kilometres of roads and tunnels, and the construction of airfields and logistics centres.
The location of the hydroelectric power station is not only determined by terrain features. The Tibet region remains one of the least electrified areas of China. Its remoteness, its difficult terrain and low population density have limited the development of the energy system. However, developing the high-mountain cities, infrastructure and tourist areas requires a stable power supply.
China has been developing plans for the comprehensive electrification of Tibet since the late 1990s. Since 2000, 193 hydropower projects have been developed in the region. Around 60% of these are still in the planning or preparation stages.#
Of the completed projects, the most ambitious one, located in the Yarlung Tsangpo Gorge, was selected. Construction began on 19 July 2025, after receiving the construction permit in December 2024.
This hydroelectric power station will provide Tibet with electricity and become an important part of the power transmission system from western to eastern China, where most industrial consumers are located. The station's installed capacity will help to cover evening and night-time peaks, when solar generation decreases and wind generation becomes unstable.
We should also consider the large lithium deposits present in Tibet. Lithium production is very energy-intensive and impossible without a stable energy supply. Launching the hydroelectric power station will kick-start the industrial development of Tibet's mineral and rare earth reserves.
In China, known as the 'factory of the world', coal-fired thermal power plants still play a significant role in the electric power industry, accounting for 34.3% of the country's total installed energy generation capacity (1150 GW). At the same time, China is a leader in the development of renewable energy. Today, the installed capacity of solar power plants is 887 GW (26.5%), and of wind power plants 520 GW (15.5%).
However, renewable energy sources are unstable. As we have with the recent blackouts in Spain and France, which were associated with sudden changes in network load, demonstrated the importance of having controllable reserve capacities. One of the best candidates for this role is hydroelectric power plants. Unlike solar and wind power plants, hydropower allows for the rapid regulation of generation to adapt to changes in the network. Against the backdrop of the growing share of renewable energy sources, the Yarlung Tsangpo HPP will become just such a 'flexible reserve', reducing the risks of instability.
As expected, the announcement of construction has sparked pushback from China’s geopolitical rivals. India and Bangladesh have both voiced concerns about the project, fearing that water could be withheld or diverted away from them. The Yarlung Tsangpo River becomes the Brahmaputra River as it flows south through the Indian states of Arunachal Pradesh and Assam, before continuing into Bangladesh as the Jamuna River. The Guardian reports that damming the river could affect millions of people living downstream.
'China can always use this water as a weapon by blocking or diverting it,' said Neeraj Singh Manhas, a research fellow at the US-based Jamestown Foundation.
International environmental groups have also increased their efforts to raise awareness of the impact on wildlife in the region, as well as the significant tectonic shifts, severe landslides and extreme geographic conditions in which the dam is expected to be built.
This hydroelectric power station is of particular importance to China at a time when the US is preparing to move from a tariff war with China to blocking its energy supplies. According to the White House, the upcoming negotiations with China on economic issues will address the need to stop importing Russian and Iranian oil. Beijing is therefore being forced to consider the possibility of a forceful blockade of Chinese seaborne imports, as discussed in some English-language media outlets.
Russian supplies across the land border are not at risk in these conditions. Nevertheless, China's desire to prioritise energy supplies independent of seaborne oil is clear, both in the north and the south of the country.