Performance Evaluation of Hydropower Operation for Nickel Smelter: A Case Study of Larona River Cascade Hydroelectric Power Plant

Function of hydropower is very important in supporting the nickel smelter process. Process of nickel smelter required huge electricity power. Low operating cost can be achieved by maximizing the utilization of hydropower. The main goal of this study to evaluate the non-financial and financial aspect for cascade hydroelectric power plant along the Larona River to deliver electricity for nickel smelter process. Non-financial aspect evaluates the efficiency and operation performance of the cascade hydroelectric power plant compare with the nickel production from the smelting plant. Financial evaluation measures the performance of economic operation of the cascade hydroelectric power plant compare with the utilization of diesel plant. The evaluation will involve input-output data from the cascade hydropower station along the Larona River basin and the nickel production from the smelter process. Cascade hydroelectric power plant along the Larona River operated by PT Vale Indonesia, global nickel mining company, consist of three power station (Larona HEPP, Balambano HEPP and Karebbe HEPP) with maximum total installed capacity 365 MW. The result of this study shows that the excellent efficiency of water consumption. Cascade hydroelectric power plant only consume additional water 7.62% to generate additional power 32.7%. It was found, the additional 90 MW from Karebbe HEPP as the last of the cascade hydroelectric power plant in Larona River is not significant impact to increase the average nickel production. However, the significant impact cost saving 63% to decrease the electricity production cost by reducing the utilization of diesel plant.