The 100-mw project will cost approximately 6.03 billion yuan (765 million U.S. dollars) and construction work will take five years.

The city government has signed a letter of intent with the Zhonghao New Energy Investment (Beijing) Co., Ltd.

Covering a total area of 31,200 square meters, the oasis town of Dunhuang boasts 3,362 hours of sunshine every year and is hailed as a prime area for solar energy development, with its easy access to electricity transmission and communications.

Currently, the world's largest solar power station is a 5-mw project in Leipzig, Germany, with 33,500 solar panels.