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New Delhi: China has begun building what is being called a “mega dam” on the Yarlung Zangbo river, which flows through the Tibet Autonomous Region of China and Arunachal Pradesh of India. Designed as a chain of five interconnected power stations along a steep 31-mile canyon drop, the project is expected to generate around 300 billion kilowatt-hours of electricity annually by the 2030s.

Analysts warn that the scale of the dam could have profound implications for India and Bangladesh, whose communities rely on the river downstream.

Managed by the newly formed China Yajiang Group, the construction comes at an estimated cost of 1.2 trillion yuan. Most of the electricity is planned to support coastal Chinese cities and factories, with a smaller portion allocated for local consumption in Tibet.

Although downstream observers remain cautious, Premier Li Qiang has hailed the project as a “project of the century”, emphasizing ecological safety.

Lifeline For South Asia

The river becomes the Brahmaputra upon entering India and eventually flows into Bangladesh, sustaining drinking water supplies, irrigation, fisheries, river transport and dense populations along its banks. About 1.3 billion people live downstream, dependent on these river basins for freshwater and food security.

Hydropower development in Tibet has already forced the relocation of tens of thousands. Studies suggest that 144,468 people have been displaced so far, and as many as 1.2 million could be affected by future projects.

Wary of potential water diversions, sudden releases or disruptions to seasonal flows, governments in India and Bangladesh are monitoring the situation closely.

Environmental, Geological Concerns

Known as the Third Pole for its vast ice and snow reserves, the Tibetan Plateau feeds Asia’s major rivers. Warming temperatures are reducing glaciers and altering the timing and volume of meltwater, raising risks for hydropower projects.

Glacial lake outburst floods are becoming more frequent, endangering dams and nearby communities.

The new dam site also lies in a seismically active zone with unstable slopes, making engineering and ecological safety complex. Local knowledge of river and slope behavior is often lost when communities are relocated, potentially removing early warning mechanisms from those who know the terrain best.

Clean Energy With Hidden Costs

China presents the Yarlung Zangbo project as a flagship renewable energy initiative that could replace coal and contribute to national climate goals. But hydropower reservoirs flood forests and wetlands, releasing methane, a greenhouse gas far more potent than carbon dioxide in the early decades, through decomposition of submerged vegetation. Critics argue that solar and wind farms could provide clean energy with far less social and environmental disruption.

Geopolitical Implications

The mega dam also revives concerns about shared rivers as instruments of political leverage. Upstream projects can be used to influence downstream nations. China denies such intentions, insisting the dam will respect ecosystem needs and regional water interests.

Still, past disputes over flood data on other rivers, including the Brahmaputra, make India and Bangladesh cautious. Authorities in India have stated they will monitor the project, while Bangladesh focuses on maintaining safe flows during dry and flood seasons.

The Yarlung Zangbo dam sits at the intersection of energy strategy, climate policy and regional security. Its construction will define China’s power system and test trust among South Asian neighbors who rely on the river for life, livelihood and agriculture. How China manages this “river of power” will resonate across the region for decades to come.