WUHAN - Zam Hydropower Station, Tibet's largest, is now fully operational, according to one of the station's contractors.

All six of the station's units were incorporated into the power grid on Tuesday, said the China Gezhouba Group, a major hydropower contractor based in Wuhan, capital of Hubei Province in central China.

Located in the Gyaca County, Shannan Prefecture, the Zam Hydropower Station harnesses the rich water resources of the Yarlung Zangbo River, a major river which flows through Tibet. It produces 2.5 billion kilowatt-hours of electricity a year.

"It will alleviate the electricity shortage in central Tibet and empower the development of the electricity-strapped region. It is also an important energy base in central Tibet," the company said.

Sources say when the electricity is ample in the summer season, part of the electricity will be conveyed to the neighboring Qinghai province.

Investment of the hydropower station, about 140 kilometers from Tibetan capital Lhasa, totalled 9.6 billion yuan (about $1.5 billion). China Huaneng group is it owner and operator.

The first unit began operation last November.