(Yicai) Oct. 28 -- China Yarlung Zangbo Group, created in July to develop the world’s largest hydroelectric project in the country’s Xizang Autonomous Region, has formed a subsidiary for renewable energy projects such as solar and wind power.

The new unit has a registered capital of CNY1 billion (USD140.9 million), according to publicly available information on corporate registrations.

China Yarlung Zangbo is building the world's largest hydropower project on the Yarlung Zangbo river. The CNY1.2 trillion (USD167.2 billion) project, which officially kicked off this summer, will consist of five cascade dams able to generate about 300 billion kilowatt hours of electricity a year.

The seasonal variations in river flow and wind energy resources in Xizang can complement each other in terms of time and space, while the formation of new energy businesses can enable stable power output through coordinated scheduling, an industry insider told Yicai.

“Hydropower forms a natural complement to wind and solar power,” the insider said. “The establishment and operation of the new energy subsidiary can optimize the energy structure of both the parent company and the region.”

Xizang is a treasure trove of clean energy. Ninety-nine percent of the power generated in the region comes from clean energy sources, as it has created a comprehensive energy system focused on hydropower, complemented by geothermal, wind, and solar energy, according to a recent report by China Central Television.

Since Xizang’s clean energy transmission system became operational in 2015, the region has transmitted over 150 billion kilowatt-hours of clean energy to other Chinese regions.

The mega-dam project, expected to start producing power in the 2030s, will play a crucial role in meeting China's dual carbon goals and addressing global climate change. The country is striving to achieve carbon peak in 2030 and carbon neutrality in 2060.

Editors: Tang Shihua, Futura Costaglione