Wu estimated Chengdu could save around US$1.2 billion (S$239.9 million) yuan in electricity annually if the artificial moon illuminated 50 sq km of the city.
The illuminated orb is meant to complement the light of Earth's existing moon, and will be eight times brighter than the natural satellite, Wu Chunfeng, chairman of Chengdu Aerospace Science and Technology Microelectronics System Research Institute Co.
The company says it will be launching an "illumination satellite" in less than two years, this created to light up the night sky with artificial light 8 times greater than the actual Moon.
Wu told reporters the technology is now "mature" and will be launched from the Xichang Satellite Launch Center in 2020.
He said "that the light of the satellite is similar to a dusk-like glow, so it should not affect animals" routines'.
According to the International Dark Sky Association, which advocates for the protection of night skies, living under light-polluted skies is a grave health hazard as our biological clock evolved to match the day-night cycle, and exposure to artificial light at night has been linked to an increased risk of obesity, sleep disorders, depression and more.
It's not the first time humans have attempted to launch a light-reflecting object into the sky - but in the past, such plans have largely ended in failure.
Based on a report from the People's Daily in China, inspiration came from an unnamed French artist who wanted to hang a necklace made of mirrors up above Earth to reflect sunshine on Paris at night.
In the 1990s, Russian Federation carried out an experiment called Banner, testing the idea of using a mirror to reflect the sun light to Earth.