According to state engineers, China’s dam could produce 70 gigawatts of electricity, which is more than Poland’s entire power capacity and would make it the world’s best power project.
China’s policymakers have been asked not to worry about biodiversity damage as they plan to boost clean energy with a 1.2 trillion yuan ($167 billion) mega-dam in Tibet.
Chinese Premier Li Qiang started a hydropower project on the lower reaches of the Yarlung Tsangpo River (the longest river of Tibet). He said that China Yajiang Group will oversee the dam construction.
The project’s estimated costs are four times higher than $37 billion cost of the Three Gorges Dam. But it might promise to help the country achieve its net-zero target by 2060.
There are risks with the project. As the Yarlung Tsangpo flows through the northeast Indian state of Arunachal Pradesh and feeds into the Brahmaputra River, which then empties into Bangladesh, it might cause friction between Beijing and New Delhi.
India’s External Affairs Minister stated that the project was a crucial topic between the two countries, and the government has addressed its concerns with China.
In reaction to China’s initiatives, some Indians demanded that India fasten the hydroelectric project in Arunachal Pradesh. State government minister Ojing Tasing stated that the government is working with local populations to increase support for the Upper Siang hydroelectric project situated downstream of the Tibet dam.
There are still many tense areas. India aims to establish itself as Asia’s primary manufacturing hub, an alternative to China. Its closer relationship with the United States in recent years has fueled its effort to offset Beijing’s regional influence.
Chinese companies have started removing workers from some Indian factories, and New Delhi has imposed investment restrictions on Chinese companies entering the country.
There are also permanent effects of dam construction on the Yarlung Tsangpo, where the river drops 2,000 meters (6,560 feet) in height over a 50-kilometre (31-mile) span, raising environmental concerns. The area is one of the top hotspots for biodiversity and is a home to a national nature reserve.
The project gets complicated by the difficulties of transporting materials and workers to a remote location. There is a high expense of laying power lines to supply electricity to China’s populated eastern regions. Beijing has stated that it will not cause adverse impact on downstream areas and committed to implementing safety and environmental protection measures.
According to Xinhua, the project will be in the southeast of the autonomous region of Tibet, near the city of Nyingchi. Engineers will determine ways to straighten some of the river’s bends and redirect water into tunnels.
According to state engineers, the dam could produce 70 gigawatts of electricity, which is more than Poland’s entire power capacity and would make it the world’s best power project.
It is not clear how the Yajiang Group will fund what is likely to be the most expensive infrastructure project. But with China’s track record of lending for dams and its potential for future hydropower sales to help repay debt, that should not be an issue.
According to a report by Citigroup Inc. analysts released on Monday, the project will increase China’s economic growth by nearly 0.1 percent in the first year of construction.
The project announcement caused China’s government bond futures to tumble on Monday due to speculation that the move would boost the country’s economy, undermining the appeal of safe-haven assets (like sovereign debt). The 30-year contracts fell to their lowest since June, as much as 0.5%.
The National Development and Reform Commission mentioned building a dam on the lower sections of the Yarlung Tsangpo River in Tibet and a power transmission project from that location to the Hong Kong region.
