China has begun a massive project of historic significance – the construction of the world’s largest hydroelectric power plant (HPP) with a capacity of 60 GW. The facility, located in a remote area of Tibet, will increase the country’s hydroelectric capacity by about 16% and contribute to a 22% increase in energy production from this source.
The investment amounts to an impressive $167 billion (1.2 trillion yuan), and the project is expected to be completed within 10 to 15 years.
In response to the enormous engineering, logistical and financial challenges, the Chinese authorities have created a new state-owned company – China Yayang Grower Co. Ltd. Its role will be to assume full management and risks of the project.
In this way, the investment is isolated from the balance sheets of other energy companies in the country. This, in turn, will help preserve the credit ratings and stability of the sector, according to S&P Global Ratings.
The BPP will be built in an extremely difficult-to-access area with poor infrastructure. This requires innovative engineering solutions – including diverting the river through a tunnel dug in the mountain.
The project is expected to have a capacity almost 3 times larger than that of the famous Chinese Three Gorges Hydropower Plant and to be equivalent to 15% of Europe’s current hydroelectric production.
Illustrative Photo by Christopher Borges: https://www.pexels.com/photo/vertedouro-27824570/
