China Launches $168 Billion Yarlung Zangbo Hydropower Project in Tibet

In a historic move to accelerate its clean energy transition, China has commenced construction of the colossal Yarlung Zangbo Hydropower Project in Tibet. Premier Li Qiang personally inaugurated the initiative in Nyingchi on Saturday, marking the start of a “project of the century” poised to reshape Asia’s renewable energy landscape.

The $168 Billion Yarlung Zangbo Hydropower Project

The project, approved by China’s State Council in December 2023, features five cascade hydropower stations along the lower reaches of the Yarlung Zangbo River—one of Asia’s highest-altitude waterways. With an estimated investment of 1.2 trillion yuan ($168 billion), it stands among the world’s largest hydropower ventures. The newly formed China Yajiang Group will oversee construction and operations, prioritizing electricity for national transmission while supporting local demand in Xizang (Tibet).

Premier Li emphasized the project’s role in advancing China’s 2030 carbon peak and 2060 carbon neutrality goals, calling it critical for “coping with global climate change” (State Council, December 2023). The infrastructure will harness Tibet’s vast untapped hydropower reserves while integrating solar and wind resources from surrounding regions. This synergy aims to establish a renewable energy hub combining hydro, wind, and solar power—a blueprint for low-carbon transition cited in China’s National Energy Administration 2024 roadmap.

Environmental Safeguards and Local Impact

Despite its scale, the project faces scrutiny over ecological risks. The Yarlung Zangbo basin sustains fragile ecosystems and downstream communities across India and Bangladesh. Premier Li explicitly mandated “special attention to ecological conservation,” requiring advanced technology to prevent environmental damage.

Key socio-economic commitments include:

• Resettlement guarantees for displaced communities, with livelihood programs linked to job creation.
• Income-boosting initiatives integrating local labor into construction and operations.
• Agricultural modernization support, highlighted by Li’s visit to Lhasa’s plateau agriculture zone, aiming to leverage Tibet’s unique resources for economic growth.

Concurrently, Li inspected the Sichuan-Xizang Railway construction, stressing “quality and safety” in projects vital for regional stability and prosperity.

Must Know

Q: Why is China building the Yarlung Zangbo Hydropower Project?
A: The project advances China’s carbon neutrality targets by replacing fossil fuels with renewable energy. It will create a multi-source clean energy base, reducing national emissions by an estimated 100 million tons annually post-completion (China National Energy Administration, 2024).

Q: How will Tibet benefit?
A: Local communities gain jobs, modernized infrastructure, and income growth through resettlement programs and agricultural tech partnerships. The project also addresses Tibet’s electricity shortages.

Q: What are the ecological concerns?
A: Experts warn of disrupted river ecosystems and sediment flow. China pledges mitigation via advanced engineering and international hydrological data-sharing, though transboundary impact studies remain ongoing (International Rivers Network, 2024).

Q: How long will construction take?
A: No official timeline exists, but similar mega-dams took 10–15 years. Premier Li noted the project’s “long-term duration and far-reaching impact.”

China’s Yarlung Zangbo Hydropower Project epitomizes a high-stakes balancing act: powering a green future while navigating ecological and geopolitical complexities. As turbines prepare to turn Tibet’s raging waters into clean electricity, the world watches whether this $168 billion gamble will energize sustainable progress—or ripple into uncharted challenges. Follow developments on this transformative endeavor.