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Located in the Gyaca County, Shannan Prefecture, the Zam Hydropower Station harnesses the rich water resources of the Yarlung Zangbo River, a major river which flows through Tibet. It produces 2.5 billion kilowatt-hours of electricity a year.
"It will alleviate the electricity shortage in central Tibet and empower the development of the electricity-strapped region. It is also an important energy base in central Tibet," the company said.
Sources say when the electricity is ample in the summer season, part of the electricity will be conveyed to the neighboring Qinghai province.
Investment of the hydropower station, about 140 kilometers from Tibetan capital Lhasa, totalled 9.6 billion yuan (about 1.5 billion U.S. dollars). China Huaneng group is it owner and operator.
The first unit began operation last November.