Zam Hydropower Station, the largest in Tibet Autonomous Region, is now fully operational, according to one of the station's contractors, the Xinhua News Agency reported on Tuesday.

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 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.

Some of the electricity will be conveyed to the neighboring Qinghai Province during the summer season when there is surplus, sources said.

A total of 9.6 billion yuan ($1.5 billion) was invested in the station. It is owned and operated by the China Huaneng group.

The first unit began operations in November last year.