The Three Gorges Dam is a hydroelectric dam that spans the Yangtze River by the town of Sandouping, located in the Yiling District of Yichang, in Hubei province, China. The Three Gorges Dam is the world's largest power station in terms of installed capacity (20,300 MW) but is second to Itaipu Dam with regard to the generation of electricity annually.
The dam body was completed in 2006. Except for a ship lift, the originally planned components of the project were completed on October 30, 2008, when the 26th turbine in the shore plant began commercial operation. Each turbine has a capacity of 700 MW. Six additional turbines in the underground power plant are not expected to become fully operational until mid-2011. Coupling the dam's thirty-two main turbines with two smaller generators (50 MW each) to power the plant itself, the total electric generating capacity of the dam will eventually reach 22,500 MW.
As well as producing electricity, the dam increases the Yangtze River's shipping capacity, and reduces the potential for floods downstream by providing flood storage space. The Chinese government regards the project as a historic engineering, social and economic success, with the design of state-of-the-art large turbines, and a move toward limiting greenhouse gas emissions. However, the dam flooded archaeological and cultural sites and displaced some 1.3 million people, and is causing significant ecological changes, including an increased risk of landslides. The dam has been a controversial topic both in China and abroad.
The government estimates that the Three Gorges Dam project will cost 180 billion yuan (US$22.5 billion). By the end of 2008, spending had reached 148.365 billion yuan, among which 64.613 billion yuan was spent on construction, 68.557 billion yuan on relocating affected residents, and 15.195 billion yuan on financing. It is estimated that the construction cost will be recovered when the dam has generated 1,000 terawatt-hours (3,600 PJ) of electricity, yielding 250 billion yuan. Full cost recovery is expected to occur ten years after the dam starts full operation. Funding sources include the Three Gorges Dam Construction Fund, profits from the Gezhouba Dam, loans from the China Development Bank, loans from domestic and foreign commercial banks, corporate bonds, and revenue before and after the dam is fully operational. Additional charges were assessed as follows: Every province receiving power from the Three Gorges Dam has to pay ¥7.00 per MWh extra. Other provinces had to pay an additional charge of ¥4.00 per MWh. Tibet pays no surcharge.