The cost of the Three Gorges Dam has reached a staggering 250 billion Chinese yuan! From 2006 until now, has the country incurred losses or made profits?
Three Gorges Dam, the largest concrete gravity dam in the world, is the largest comprehensive development project in the world and is hailed as China’s project of the century.
Its massive body sits on the upper reaches of the Yangtze River in the Three Gorges section, carrying a heavy burden of historical mission and expectations.

This idea originated from Mr. Sun Yat-sen a hundred years ago, who dreamed of building a dam in the Three Gorges to harness its hydraulic advantages.
This idea went through the vicissitudes of the world, and it was not until 1994 that it officially started with the joint efforts of the Chinese people.

Difficulties and hardships, together with our wisdom and sweat, made it possible for this dam to finally be completed in 2006.
Before this, in 2003, the Three Gorges Reservoir had already started to store water. Until now, the Three Gorges Dam has been in operation for a full 20 years.
From an economic perspective, China has invested a huge amount of capital in the Three Gorges Dam project, with a total expenditure of 250 billion yuan, which is approximately equivalent to 500 billion yuan in terms of current purchasing power.

With such a huge investment, it is inevitable that people will have questions: has this 500 billion-dollar project already made a profit?
Three Gorges Dam: The Enormous Power Generation Monster
Without a doubt, the Three Gorges Dam is a power generation monster. With the help of this hydroelectric plant, China has generated an astonishing 16 trillion kilowatt-hours of electricity over the past twenty years, contributing an average of 80 billion kilowatt-hours of power to the national grid each year.

How big is this number?
If it is converted into coal energy, it would be a massive mountain of coal, towering into the sky, enough to leave people in awe.
Now, let’s try to convert these numbers into a currency that we can understand.

In China, the price of electricity for residential use is approximately 0.5 yuan per kilowatt-hour, while for industrial and commercial use, it can go up to 1 yuan per kilowatt-hour.
However, the price that the country can offer for the electricity generated by hydropower plants is slightly lower.
During the day, the electricity price is approximately 0.3 yuan per kilowatt-hour, while at night it is reduced to 0.2 yuan per kilowatt-hour.

This is because the demand for the power grid varies with different seasons and time periods.
But for simplification purposes, we can assume that the electricity price of the Three Gorges Dam is 0.25 yuan per kilowatt-hour.

So, the power income of this dam over the past 20 years has reached approximately 400 billion yuan.
However, this is only the hydropower revenue of the dam, and other aspects of economic benefits have not been taken into account.
Other Economic Benefits of the Three Gorges Dam
First, the tourism industry has brought considerable benefits to the Three Gorges Dam.
In the past 20 years, an average of 2 million tourists have gathered at the Three Gorges Dam each year, with the number of visitors in recent years exceeding 3 million.

Each visitor spends an average of 300 yuan when visiting the Three Gorges Reservoir.
Based on this calculation, the Three Gorges Dam can generate an annual income of 600 million yuan from tourism. Over a period of twenty years, the total tourism revenue would amount to 12 billion yuan.

Next, we need to consider the impact of the Three Gorges Dam on economic development in terms of goods transportation.
Although this does not belong to the direct income of the dam, its role in promoting the economy of the Yangtze River Basin cannot be ignored.

The annual cargo volume passing through the Three Gorges Ship Lock reaches an astonishing 120 million tons, with a shipping value exceeding trillions of yuan.
This number looks impressive, however, these profits have not been deposited into the Three Gorges Dam’s account.
First, we need to correct a misconception: Cargo ships do not need to pay any lockage fees when passing through the Three Gorges Dam.

Many people may be surprised by this, after all, dams are built to provide convenience for ships using resources.
However, this also reflects the contribution of the Three Gorges Dam to the Yangtze River shipping industry.
Although it did not derive any economic benefits from it, it indirectly contributed to the economic development of the Yangtze River Basin.

If we include the impact of tourism revenue and shipping in our income calculation, we can obtain a new result: the total revenue and influence of the Three Gorges Dam over 20 years are enormous.
Although this figure may seem insufficient to offset the initial investment, we should note that this is only the direct revenue from the dam.

If we take into account indirect income, the economic value of the Three Gorges Dam will far exceed what we can currently imagine.
Flood Control Shield: The Ultimate Mission of the Three Gorges Dam
Here, what I want to say is that the value of the Three Gorges Dam is definitely more than just power generation, tourism, and transportation. Its most important role is flood control, which is the true soul of this massive project.
Only in terms of flood control, the Three Gorges Dam truly demonstrates its immense value.

Back in 1998, that year, the lower reaches of the Yangtze River suffered a devastating flood, of a magnitude rarely seen in the world.
According to statistics, the number of affected people in that flood reached 230 million, with direct economic losses exceeding over 160 billion, and the indirect losses reached more than 700 billion yuan.

These numbers have far exceeded the initial investment of the Three Gorges Dam.
All of this happened before the construction of the Three Gorges Dam.

However, with the completion of the Three Gorges Dam, there has been no occurrence of such large-scale flood disasters in the lower reaches of the Yangtze River.
During the rainy season every year, the Three Gorges Dam adjusts the water in the reservoir to meet the flood peaks of the summer. Each adjustment is aimed at safeguarding the safety of the Yangtze River Basin and protecting countless lives and properties.

Experts from the Department of Water Resources have estimated that the Three Gorges Dam can reduce China’s annual losses by approximately 1.5 trillion yuan.
This means that from the day the Three Gorges Dam began peak shaving and flood control, it has already recouped its investment.

After all, compared to human life, any amount of money is insignificant.
This is the true value of the Three Gorges Dam, this is the reason why we built it.
Beyond the Times: The Enduring Influence of the Three Gorges Dam
Looking back at the glorious journey of the past twenty years, the Three Gorges Dam has written a magnificent chapter in the development of human civilization in its unique way.
And its influence extends far beyond that.

It continues to carry out its duties with its strong posture, bearing the heavy responsibilities bestowed by history, bringing us many conveniences in our lives.
In the context of global carbon neutrality, the Three Gorges Dam has demonstrated its unique value with its immense clean energy capacity. (“Carbon neutrality” refers to the balance between carbon emissions from human activities and the amount of carbon absorbed by the Earth, achieved through various means of reducing and offsetting emissions.)

According to statistics, in the past 20 years, the Three Gorges Dam has saved China 600 million tons of standard coal in electricity generation and reduced 1.9 billion tons of carbon dioxide emissions, making a tremendous contribution to China’s environmental conservation efforts.

Not only that, the lifespan of the Three Gorges Dam is also a concern that we need to consider.
When we were constructing the Three Gorges Dam, we used special cement and high-standard steel bars, which can withstand a nuclear explosion equivalent to 1 million tons of TNT.

According to experts’ predictions, this sturdy dam will have no issues after 150 years of use. This is the precious heritage that our generation will leave for future generations.
As the mother of the mighty Yangtze River, the Three Gorges Dam carries our hopes for the future with its steadfast attitude.
If we consider the initial investment as the cost of the Three Gorges Dam, then it has brought not only quantifiable electricity income to China and the world, but also invaluable contributions to life safety, environmental protection, and national pride that cannot be measured in terms of money.

These all make us understand that the term “payback” may no longer accurately reflect the value of the Three Gorges Dam.
Because in front of the dam, what we have gained far exceeds the investment, its value has long surpassed the limit of return on investment.