Chinese Premier Li Qiang announced the construction commencement of a hydropower project in the lower reaches of the Yarlung Zangbo River.

A ground-breaking ceremony was held in Nyingchi City, located in the Xizang autonomous region of southwest China, as reported by state news agency Xinhua.

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The project is being built with a total estimated investment of 1.2tn yuan ($167.8bn).

Its primary focus will be to generate electricity for external markets, while meeting local energy needs in Xizang.

The project comprises five cascade hydropower stations with an annual production capacity of 300 billion kilowatt-hours (kWh), equivalent to the total electricity consumption of Britain in 2024, as reported by Reuters.

The dam will be situated in the lower reaches of the Yarlung Zangbo River. A section of the river descends 2,000m (6,561ft) over a distance of 50km, presenting significant hydropower potential.

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Construction commencement of the hydropower project is seen as China’s most ambitious initiative since the Three Gorges Dam on the Yangtze River, which became fully operational in 2012 after a construction period of 18 years.

India and Bangladesh have expressed concerns regarding the potential impact of the dam on the millions living downstream, and non-governmental organisations have raised alarms about the risks posed to one of the richest and most diverse ecosystems in the region, as reported by Reuters.

In response, Beijing has asserted that the dam will help satisfy power demands in Tibet and across China. The Chinese government claims that it will not significantly affect downstream water supplies, or the environment. The dam is anticipated to begin operations in the 2030s.

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