China has approved the construction of the world’s largest hydroelectric dam on the eastern edge of the Tibetan plateau.

The Power Construction Corporation of China (PCC) estimates that the dam, to be built on the lower reaches of the Yarlung Zangbo River, could produce 300 billion kilowatt hours of electricity annually by 2020.

The dam, currently the largest in the world and located in central China, will operate at more than three times the design capacity of the Three Gorges Dam, which is 88.2 billion kilowatt hours.

Xinhua said on Wednesday that the project will play a key role in achieving China’s goals of reducing carbon emissions and becoming carbon neutral, stimulating related industries and creating jobs in Tibet.

The construction cost of the dam, including engineering costs, is expected to exceed that of the Three Gorges Dam, which cost 254.2 billion yuan ($34.83 billion). This includes the resettlement of 1.4 million people displaced by the dam, more than four times the original estimate of 57 billion yuan.