China unveils $167 billion “project of the century” hydro scheme 

Source:
BaiguanNews, July 30, 2025

China has announced plans for a $167 billion run-of-the-river hydropower project on the Yarlung Tsangpo River in Tibet, branding it the “project of the century” for its potential to transform the country’s energy landscape. Designed to generate roughly three times the output of the Three Gorges Dam, the facility will connect to southern economic hubs such as Guangdong, Hong Kong, and Macau through a $7 billion high-capacity transmission grid. The project is central to Beijing’s strategy to reduce reliance on imported fossil fuels and meet its long-term renewable energy targets.

The hydropower development is expected to significantly boost China’s renewable generation capacity, but it has raised environmental and geopolitical concerns. The Yarlung Tsangpo flows downstream into India and Bangladesh, where communities and governments fear that large-scale water diversion and damming could alter river flows, impact agriculture, and threaten biodiversity. Environmental groups have also warned about potential displacement of local populations in Tibet and the disruption of fragile high-altitude ecosystems. Despite these concerns, Chinese authorities emphasize the project’s role in providing clean, stable energy to power the country’s industrial and urban growth.

This news is important because it illustrates how mega-infrastructure projects are shaping the global energy transition while testing the balance between development, environmental stewardship, and international diplomacy. The scale of the Yarlung Tsangpo scheme shows how nations with major engineering capacity can rapidly shift their energy mix, but it also underscores the transboundary challenges that arise when natural resources are shared. For stakeholders worldwide—from governments to environmental advocates—the project serves as a case study in how energy ambitions can intersect with ecological limits and geopolitical sensitivities, influencing not just regional stability but also the pace of global decarbonization.