Yarlung Hydropower Project: A Decade-Defining Transmission Build for the Wire and Cable Sector

The Yarlung Tsangpo hydropower development in Tibet is set to become one of the most influential cable and transmission programmes of the next ten years. Requiring large scale 500 kV AC underground cable and ±800 kV DC overhead lines, it will reshape demand, technology pathways and competitive positioning across the global wire and cable industry.

The project was outlined by Chenfei Wang, Head of Wire & Cable, CRU at wire Southeast Asia 2025 IWMA Seminar Day and has quickly become one of the most closely watched developments in the sector.

 

A Project on a New Scale

Yarlung is expected to generate around 300 TWh per year, approximately three times the output of the Three Gorges Dam. To deliver that power to load centres across China, the scheme incorporates:

• About 2,600 km of 500 kV AC underground cable, requiring an estimated 58,000 tonnes of copper
  • Around 25,000 conductor kilometres of ±800 kV DC overhead lines, consuming approximately one million tonnes of aluminium BHOC
  • A construction window of up to ten years, creating a long term structural anchor for EHV demand

This is not simply a hydropower facility. It represents a national scale transformation of China’s UHV transmission network.

 

Global Impact: A Benchmark for the Next Era of Grid Expansion

For the global wire and cable sector, Yarlung reinforces the accelerating adoption of high capacity, long distance HVDC to integrate renewable power. The project provides:

• A sustained uplift for HV and EHV specification cable and conductor demand
  • A reference point that validates extreme terrain installations and very long span engineering
  • Downstream confidence for markets in Europe, India and North America planning similar HVDC corridors

Although most of the procurement will be domestic, the global influence is significant. China’s technical standards in ±800 kV DC and 500 kV AC are increasingly visible across Asia, Africa and Latin America, shaping specification requirements and competitive dynamics.

A key risk lies in materials markets. Concentrated demand for conductor grade aluminium and EHV-quality copper may contribute to tighter supply conditions and increased metal premiums for producers worldwide.

China’s Industry: The Biggest Beneficiary

The most profound commercial impact will be in China itself. Only a limited number of Tier 1 Chinese wire and cable manufacturers have the ability to supply products at this voltage class. As a result, Yarlung delivers:

• A decade of predictable, high value domestic orders
  • Investment opportunities in new UHV test facilities, XLPE compounding and OPGW systems
  • Stronger international positioning for Chinese EPCs and cable suppliers

The project aligns closely with national priorities, particularly the expansion of hydro-powered green aluminium, which will directly feed the one million tonnes of BHOC conductor required.

In the long run, the 300 TWh of new generation capacity will support the growth of downstream sectors such as data centres, EV manufacturing and high-tech industry, all of which will drive continued LV and MV cable demand.

There are challenges. The Himalayan terrain introduces seismic and geotechnical complexity, and the sector becomes more exposed to the policy cycle as megaprojects increasingly shape production planning.

Technical Focus: Pushing the Boundaries of Transmission Engineering

Yarlung uses some of the most advanced transmission technology in operation today.

500 kV AC Underground Cables
These circuits rely on high performance XLPE insulation with strong thermal and electrical endurance. Conductors often exceed 2,500 to 3,000 mm² and may use segmental designs to reduce skin effect. Installation through tunnels and steep gradients requires specialised mechanical protection and stress control systems.

±800 kV DC Overhead Lines
The overhead network uses extremely large aluminium conductor bundles in quad or hex configurations. Long spans of up to 1 to 1.5 kilometres demand high mechanical strength, anti galloping features, corona control and extensive vibration management. OPGW is integrated for monitoring across remote high altitude landscapes.

Together these technologies form a world leading example of ultra high voltage engineering.

Spotlight Summary

The Yarlung hydropower project is a defining development for the next decade of the wire and cable industry. It strengthens China’s UHV supply chain, influences global engineering practices and underscores the growing role of long distance HVDC in the transition to clean energy. While commercial opportunities will be concentrated within China, the project’s technical and strategic significance will resonate throughout the global industry.