Due to the over draining of water, more than 10,000 mu (667 hectares) of saltwater lakes and 1,000 mu of freshwater lakes in the oases have dried up, he said.

The water level of the Yueya Spring, which is a crescent-shaped lake and also a famous scenic spot in Dunhuang, has dropped from five meters to one meter in the past 60 years. Therefore, the government has had to encourage farmers to plant less water-consuming crops and reduce the wind power generation area of farmland to conserve water, but the moves have hampered the development of the economy.

“Although technology and money remain challenges for Dunhuang to embark on the new energy economy, its development path makes full use of its own advantages and will benefit the local economy and environment as well,” said Xi Wenhua, an official with the United Nations Industrial Development Organization.

Dunhuang boasts abundant renewable resources, as it receives 3,257 hours of sunshine as well as possessing rich wind resources and spacious wastelands, according to the small wind generator city government’s data.

More than 3,500 square kilometers of wasteland on the edge of oases in the city can be used to build solar and wind energy facilities, with the potential installed capability reaching 100 million kilowatts, according to the data.

China’s first photovoltaic power station with a net capacity of 20 megawatts has been completed in Dunhuang, and the construction of an even larger one with a capacity of 100 megawatts is under way in the city.

To meet its obligations to combat climate change and wind turbine generator adjust the domestic energy-consumption structure, China has accelerated its development of renewable energy.

Earlier this year, Liang Zhipeng, deputy director of the Department of New Energy and Renewable Energy of NEA, said China plans to build pilot zones of microgrids in regions with rich solar and wind resources and establish 100 pilot cities of new energy development from 2011 to 2015.

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