BEIJING/NYINGCHI, July 22 2025 — China has officially started construction of what could become the world’s most powerful hydropower dam at Medog County in Tibet on the Yarlung Zangbo River’s lower reaches, premier Li Qiang announced at a groundbreaking ceremony held July 19. This mega-dam, comprising five cascading hydropower plants is part of Beijing’s ambitious campaign to rapidly expand renewable energy infrastructure. It was officially unveiled during a groundbreaking ceremony held July 19.
The Economic Times At an estimated investment of roughly 1.2 trillion yuan (approximately USD 168 billion), China’s New Silk Road Initiative facility will generate around 300 billion kWh yearly – three times what was generated from Three Gorges Dam–forming an essential pillar of its goal to become carbon neutral by 2060. Construction should continue through 2030s supplying both local and national electricity needs. Dedicated sites exist on both Wikipedia and LinkedIn where more details may be found about construction progress. +15,amb Wikipedia +15, and LinkedIn +15
Strategic Implications and Domestic Benefits
Premier Li has described this project as the “project of the century”, and expects it to drive economic development in Tibet, create local labor employment opportunities, and extend China’s clean energy dominance. Officials point out its location–where Yarlung Zangbo plunges 2,000 meters over 50km stretch–offers unique engineering potential for maximum hydroelectric production. Al Jazeera
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As soon as the announcement was made, regional markets saw an immediate upsurge: China’s CSI300 index rose 0.4% while Hong Kong’s Hang Seng index gained 0.3% due to strong performance from both construction and power sectors. According to Reuters reports.
However, the project has generated criticism on various fronts. Environmental organizations, including International Campaign for Tibet, warn of irreparable damage to Tibet’s fragile ecosystem and biodiversity; additionally it sits within an earthquake-prone Himalayan zone increasing ecological disruption risk. Reuters plus15Wikipedia+15 Whilst being economically beneficial it also poses numerous environmental, geopolitical, and cultural risks.
India and Bangladesh–where the rivers are known respectively as Brahmaputra and Jamuna–have expressed concerns over potential reductions in water flow and seasonal disruption to agriculture and livelihoods downstream of them. Although Assam’s chief minister did not appear immediately alarmed by what he described as its effect, detailed scientific analyses must take place to weigh benefits such as flood mitigation against potential ecological risks. News Minimalist (+1). Timesofindia.indiatimes.com
Tibetan rights groups have raised serious concerns over displacement and cultural loss caused by Chinese resettlement plans, with activists fearing the destruction of sacred sites and Tibetan villages that follow precedents such as Three Gorges resettlements. For further reading: >>Wikipedia >>
Response and Next Steps
Beijing insists that its dam project will not adversely impact downstream flows or regional ecosystems, promising cooperation with affected nations and prioritising ecological safeguards. Chinese officials emphasize its compatibility with carbon neutrality goals and economic benefits. News Minimalist, Reuters, The Guardian.
Unanswered questions remain about compensation for displaced communities; what studies are underway regarding environmental impacts; and how will downstream countries be informed and assured.
As construction begins in earnest, its true test will lie in whether China upholds environmental protections as stated and manages geopolitical tensions due to growing South Asian concerns over water security. The Yarlung Zangbo hydropower project marks a bold leap into renewable dominance but comes at a considerable environmental, social, and international cost; whether this enormous infrastructure project can provide sustainable benefits while respecting regional equilibrium will ultimately define its legacy.