With an ultra-bright full moon each and every night, the city would then be in for serious savings on their monthly electric bills, or at least that appears to be the rationale for the ambitious project.
Chengdu's artificial moon has already been met with criticism from skeptics and concerned citizens who argue that the light will have adverse effects on animals and astronomical observation, People's Daily points out.
Exact details about the new moon and the launch date haven't been released, but Wu said scientists have been working on the idea for years and that technology has finally matured.
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Controls on the satellite will allow light levels to be configured and controlled, Wu told a conference of entrepreneurs, and the final object would be able to reflect light on a 10 to 80 mile area, well within the city's area.
A French artist once envisioned a cosmic version of Versailles' famed Hall of Mirrors, reportedly proposing the creation of an artificial moon powered by a necklace of mirrors that would reflect light back onto the streets of Paris.
Some expressed concerns about light pollution and potentially negative impact on animals.
However, one of those involved in the project, Kang Weimin, director of the Institute of Optics, School of Aerospace, Harbin Institute of Technology, said this was not the case.
Another Russian attempt to launch a space mirror in 1999 fizzled before it got off the ground, according to The Guardian.
He added that the testing of the illumination started years ago and is now ready.