The freakish plan, which would give a "dust-like glow" for the south-western city of 14 million, was revealed in the People's Daily newspaper.
The artificial moon would be able to light an area of up to 10 to 80 kilometers in diameter, giving a dusk-like hue to complement the real moon in the sky.
The brightness of the artificial moon would be bright enough to replace streetlights, another state-run media outlet, Xinhua, quoted Wu as saying.
The idea is the brainchild of Wu Chunfeng, chairman of Chengdu Aerospace Science and Technology Microelectronics System Research Institute.
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The Chinese city of Chengdu could put an 'artificial moon' in the sky to make nights brighter.
Some people expressed concern that the lights reflected from space could have adverse effects on the daily routine of certain animals and astronomical observation. Citing the imagined French necklace of mirrors as the impetus for the project, Chunfeng explained that the technology behind the satellite has been in the testing phase for years but is finally near completion.
Back in the 1990s a team of Russian scientists tried to do something similar with a space mirror.
Wu estimated that new moons could save the city of Chengdu around 1.2 billion yuan ($173 million) in electricity costs annually, and could even assist first responders during blackouts and natural disasters. The scheme used a device known as the Znamya 2, which was equipped with a 25-meter mirror to illuminate a three-mile radius of land.
The three new man-made moons can take turns reflecting sunlight as they will not always be in the best position relative to the sun, and together they can illuminate an area of around 3,600 to 6,400 sq km on Earth for 24 hours if desired, he said.