context: First included in the 14th five-year plan in 2021 and formally approved in December 2024, the Yarlung Tsangpo hydropower project has a planned annual output of 300 bn kWh—nearly three times the generation capacity of the Three Gorges Dam. Most of the electricity will be transmitted to other provinces, while a portion will serve local energy needs in the Tibetan region. Beyond its energy ambitions, the project represents a massive economic catalyst. Its construction—encompassing five cascade dams, high-altitude tunnelling and vast energy infrastructure—will generate demand across industries, from heavy equipment and grid engineering to logistics and clean technology manufacturing.
China Yajiang Group Co Ltd was launched on 19 July as a central state-owned enterprise tasked with overseeing the development and operation of the Yarlung Tsangpo River downstream hydropower project—a major clean energy initiative in the Tibet Autonomous Region. Zhang Guoqing 张国清 vice premier attended the launch ceremony and unveiled the group’s nameplate.
Zhang stated that the creation of Yajiang Group represents a strategic move to safeguard both national energy securityand overall national security, and to ensure the successful implementation of the hydropower project. The Yajiang Group will serve as the official developer and operator of the project.
Earlier that same day, Premier Li Qiang 李强 announced the official groundbreaking of the project at the dam site of the Milin Hydropower Station in Nyingchi, Tibet. With an estimated total investment of C¥1.2 tn, the project will consist of five cascade hydropower stations, making it the largest infrastructure project in the world by investment.
The project uses a 'river straightening and diversion tunnel' design to exploit the river’s steep drop. According to officials, this location—deep within one of the world’s highest and steepest gorges—is an unparalleled hydropower resource.
India, a downstream country, has voiced concerns about potential ecological and geological impacts. In response, Guo Jiakun 郭嘉昆 Foreign Ministry spokesperson emphasised that the project has undergone rigorous scientific assessment and will not negatively affect downstream countries.
Rather, by storing floodwaters during rainy seasons and releasing them in dry periods, the project could improve flood control and climate resilience downstream. Wang Lei 王雷 PRC Embassy in India chargé d’affaires also noted the project uses only the river’s kinetic energy and may help regulate downstream flows for flood and drought mitigation.