In a landmark move aligning economic ambition with climate strategy, China has commenced construction on the colossal Yarlung Zangbo Hydropower Project worth USD 168 million in Tibet. A massive clean energy initiative, this project is expected to reshape regional energy flows and significantly impact the aluminium industry by shouldering power supply responsibility with Yunnan.
Powering a nation and its aluminium sector
In Nyingchi, Premier Li Qiang announced the "project of the century", highlighting its strategic relevance for the nation. The five-dam complex along the Yarlung Zangbo River is expected to generate 300 terawatt hours (TWh) of power annually by 2035, which is greater than the UK's annual power consumption at present. The scope of this project, with a total estimated cost of 1.2 trillion yuan (USD 168 billion), establishes it as one of the largest hydropower developments in the world.
Hydropower generation is critical for Yunnan province, which is home to a large cluster of aluminium smelters that have previously faced power outages due to persistent droughts. Now that hydropower lakes have refilled after the summer monsoons, Yunnan’s aluminium production is recovering. Notably, China produced a record 3.81 million tonnes of aluminium last month.
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