China is advancing one of the world’s most ambitious clean energy projects with the construction of the Daofu Pumped Storage Hydropower Plant in Daofu County, Tibet. Often described as a “mountain-sized battery,” the massive facility is designed not only to generate electricity but also to store renewable energy on an unprecedented scale, helping address one of the biggest challenges facing the global clean energy transition.
Construction of the project began in early 2024, with the facility making use of the region’s mountainous terrain to create a giant pumped-storage hydropower system. Once operational, the Daofu plant is expected to store up to 12.6 million kilowatt-hours (kWh) of electricity per day, enough to supply power to nearly 2 million households. The project forms part of China’s broader strategy to reduce dependence on fossil fuels while expanding its renewable energy infrastructure.
China already leads the world in renewable energy investments despite remaining the largest consumer of coal. Over the past decade, the country has rapidly expanded solar, wind and hydropower generation, recognising that energy storage remains one of the biggest obstacles to building a reliable clean energy system. Unlike fossil fuel power plants, renewable energy sources such as solar and wind depend on weather conditions, making efficient storage essential for maintaining a stable electricity supply.
The Daofu project relies on pumped-storage hydropower, a technology often referred to as a “water battery.” The system uses two reservoirs located at different elevations. During periods of high electricity demand, water is released from the upper reservoir through a network of tunnels spanning nearly 12 miles, driving turbines to generate electricity before reaching the lower reservoir.
When electricity demand falls or renewable energy production exceeds consumption, the process is reversed. Excess electricity generated by solar panels and wind farms powers pumps that send the water back to the upper reservoir, effectively storing energy for future use. This allows the facility to act like an enormous rechargeable battery, ensuring clean electricity remains available even when sunlight or wind levels decline.
Energy experts believe projects like Daofu could play a crucial role in stabilising renewable-powered electricity grids worldwide. By storing surplus energy during periods of high renewable generation and releasing it when demand increases, pumped-storage facilities reduce reliance on coal and natural gas power plants while improving overall grid reliability.
However, despite its technological significance, the project has also attracted widespread environmental and geopolitical scrutiny. The plant is being constructed in Tibet, a region that has long remained politically sensitive due to concerns over human rights, cultural preservation and environmental protection. Critics argue that large infrastructure projects in the region have previously displaced local communities, affected fragile ecosystems and threatened culturally significant sites.
Another major concern relates to the Brahmaputra River, which originates in Tibet before flowing into India and Bangladesh. Analysts have expressed concerns that China’s growing control over upstream water resources could potentially influence downstream water availability. Indian policymakers have previously raised fears that future water releases or restrictions could impact agriculture, drinking water supplies and flood management in neighbouring countries, further intensifying regional water security concerns.
Environmental experts have also highlighted geological risks associated with the project. The Daofu plant is located near a tectonic plate boundary, making the area susceptible to earthquakes. Researchers warn that constructing such a massive dam in a seismically active region could increase the risk of landslides, soil erosion and other environmental challenges. Although Chinese authorities maintain that extensive safety assessments have been conducted and the project will have minimal environmental impact, independent experts continue to call for careful monitoring as construction progresses.
The Daofu Hydropower Plant illustrates both the enormous opportunities and complex challenges associated with large-scale renewable energy infrastructure. While the project has the potential to revolutionise clean energy storage and support China’s long-term carbon reduction goals, it also raises important questions about environmental sustainability, regional water security and responsible infrastructure development.
As countries worldwide accelerate their transition toward renewable energy, projects like Daofu demonstrate that building the energy systems of the future will require not only technological innovation but also careful consideration of environmental, social and geopolitical implications.
Disclaimer: This report has been editorially prepared using publicly available information and agency inputs. While every effort has been made to ensure accuracy, unintentional errors or omissions may occur. Readers are encouraged to verify critical information from official sources.
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