Performance evaluation of hydropower

operation for nickel smelter: A case study of

Larona River cascade hydroelectric power
plant
Cite as: AIP Conference Proceedings 2088, 030003 (2019); https://doi.org/10.1063/1.5095308
Published Online: 29 March 2019

Wafir Kasman, and Syamsul Arifin MT

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AIP Conference Proceedings 2088, 030003 (2019); https://doi.org/10.1063/1.5095308 2088, 030003

© 2019 Author(s).
 Performance Evaluation of Hydropower Operation for
Nickel Smelter: A Case Study of Larona River Cascade
Hydroelectric Power Plant
Wafir Kasman1, a) and Dr. Ir. Syamsul Arifin, MT1, b)
1
Department of Engineering Physics, Faculty of Industrial Technology, Institute of Technology Sepuluh November,
Surabaya, Indonesia
a)
wafir@vale.com
b)
syamsul@ep.its.ac.id

Abstract. 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.

Keywords – cascade hydroelectric power plant, nickel smelter, efficiency evaluation, performance economic evaluation

INTRODUCTION

Increase in population and economic growth direct impact to the energy consumption, especially electricity
consumption. According to the International Energy Agency (IEA), total final electricity consumption increased more
than four times in 2015 compared to that in 1973, meanwhile the hydroelectricity production only increases more than
three times in 2015 compared to that in 1973. IEA also indicated by sector transport, manufacturing and residential
are the three largest end uses of energy [1]. Historical data record of energy consumption, reliable energy, energy
indicator and energy demand are the important key to monitor the energy efficiency policies. For basic metals
manufacturing, the energy efficiency indicators became better more than 10% in 2014 compare to that in 2000 [2].
One of the effort to anticipated the crisis in mining industry is initiative how to reduce the operating cost in term
of energy consumption [3] [4] [5] . From the data showing that more than 50% of the production cost in the mining
industry related to energy consumption. Most of them because consume the energy for their operation using fuel. From
the several types of reliable energy, indicated that the hydropower is the one of economical energy source which can
increase the people income and effecting for the national growth [6]. As mention above, hydropower is the one of
economical energy source. With almost no fuel consumption to deliver the electricity, it is such a clean, renewable
source of energy and help to reduce carbon emission in the world [7].

Advanced Industrial Technology in Engineering Physics

AIP Conf. Proc. 2088, 030003-1–030003-10; https://doi.org/10.1063/1.5095308
Published by AIP Publishing. 978-0-7354-1818-9/$30.00

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 Several hydroelectric power plants at the same river basin called cascade hydroelectric power plant. Thus, cascade
hydroelectric power plants have hydraulic coupling features [8]. Study of hydropower efficiency evaluation shows the
economic operation of a hydropower station mainly contains two aspects: water consumption rate and hydropower
utilization rate [9]. The other study [10] the TOPSIS model is introduced to analyze the overall hydropower efficiency.
The example of the modelling to do performance evaluation for improving maintenance effectiveness and operation
efficiency using transfer function modelling [11].
The objective of this study to evaluate non-financial and financial aspect. Non-financial aspect evaluates the
efficiency of the cascade hydroelectric power plant by measure the water consumption rate and hydropower utilization
rate 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 utilization cost of diesel plant.

CASE STUDY AREA

The Larona River’s headwater are located to the northwest of the Sorowako village in South Sulawesi. The upper
catchments drain into Lake Matano, which is approximately 28 km long by 9 km wide (Fig. 1). About 10 km
downstream of the Lake Matano outlet, the river enters Lake Mahalona where it is joined by a large tributary. The
river flows out of Lake Mahalona to a confluence with another large tributary, and then south to Lake Towuti. From
the Lake Towuti, the Larona River flows northwest towards to the Larona Hydroelectric Power Plant, the first HEPP
in the cascade system.
Downstream of the upper Larona tailrace the river enters Balambano reservoir where it is joined by the Patingko
River before arriving at the Balambano dam and powerhouse, as the second HEPP in cascade system. The distance of
Balambano HEPP approximately 10 km downstream of Larona HEPP. The powerhouse discharges flow back into the
Larona River. Excess flow at the Balambano dam is passed back to the river through a gated spillway. Karebbe HEPP
is located about 9 km downstream of Balambano and its reservoir will reach back to Balambano tailrace. Karebbe
HEPP is the third HEPP in cascade system. Flows released from the Karebbe powerhouse and spillway will flow down
the Larona River to the village of Karebbe, where there is a confluence with the Pongkeru River. The resulting Malili
River flows about 8 km to its mouth in the Gulf of Bone.

FIGURE 1. Larona river with 3-unit cascade hydroelectric power plant

Larona Hydroelectric Power Plant

Larona HEPP was commissioned in 1979 with Lake Towuti storage reservoir, a natural lake with level control by
Batubesi dam with a live storage of approximately 1,500x106 m3. A river channel leading from Lake Towuti to
Batubesi dam. The upper Larona HEPP returns the power flow to the Larona River about 8 km downstream of Batubesi

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Dam, at the point where the Larona River becomes the reservoir for Balambano dam. The maximum operating level
at Lake Towuti is set by the concession agreement at elevation 319.6 m. There are no administrative limits set on the
lower operating level, however the channel between Lake Towuti and Batubesi dam restricts the amount of water that
can flow at lower lake levels. The maximum discharge for the Larona HEPP is a dependent on the canal intake gate
capacity, canal capacity, penstock capacity and river channel capacity between Lake Towuti and Batubesi dam. Larona
HEPP has installed with 3 vertical Francis turbines capacity 68 MW each. The overall design plant efficiency of the
units assumed 90.2 %. The unit availability was assumed to be 100%, maintenance was assumed to be undertaken
concurrent with maintenance of the smelting plant and there are no forced outages.

Balambano Hydroelectric Power Plant

Balambano HEPP is a run of the river facility. The small head pond only has sufficient regulating storage to meet
instantaneous peak demands and/or absorb flow variations within a day. The local catchment of the Balambano dam
has an area of 272.4 km2, with much of the local inflow entering via one major tributary, the Patingko River about 4
km upstream of Balambano dam. Balambano reservoir has operating range for full supply level at elevation 166.0 m
and minimum operating level at elevation 164.0 m. The reservoir is normally operated at a high level to maximize
generation, allowing minimal storage to absorb flow variations. Balambano HEPP was commissioned in 2000 and
have 2-unit vertical Francis turbines rated at 70 MW each, coupled with high inertia generators. The overall design
plant efficiency of the units based on the tests is 89.5%. The unit availability also assumed to be 100%, maintenance
was assumed to be undertaken with maintenance of the smelting plant and there are no forced outages.

Karebbe Hydroelectric Power Plant

Karebbe HEPP is the last of the cascade projects on the Larona River. It is also a run-of-the-river facility. The
small head pond only has sufficient regulating storage to meet instantaneous peak demands and/or absorb flow
variations within a day. The local catchment of the Karebbe dam has an area of 53.3 km2. Karebbe HEPP was
commissioned in 2011 and have 2-unit vertical Francis turbines rated at 65 MW each. The overall plant efficiency of
the units, based on the model test results of the turbines supplier is 92.2%. Karebbe reservoir has operating range for
full supply level at elevation 79.0 m and minimum operating level at elevation 77.5 m. The reservoir will normally be
operated at a high level to maximize generation, but at same time, some storage will be retained to absorb flow
variations. The unit availability also assumed to be 100%, maintenance was assumed to be undertaken with
maintenance of the smelting plant and there are no forced outages.

Smelting Plant

PT Vale Indonesia uses pyro-metallurgy technology, known as the smelting method, to process nickel ore into
nickel in matte. The process goes through the stages of mixing ore with coal, calcination stages, smelting, enrichment,
and granulation. This technology is best applied for saprolite ores with high nickel content (> 2%) and low iron. The
nickel processing flow as follow: dryer, kiln, furnace, converter and product dryer. In processing nickel ore, PT Vale's
plant receives energy from cascade hydroelectric power plant and thermal generating facilities. As much as 94% of
energy for operating activities comes from cascade hydroelectric power plant. Most of the electricity consumption in
the furnace area.

METHODOLOGY

As mention above, study refers to the both non-financial and financial aspect with data comparison of cascade
hydroelectric power plant, smelting plant and utilization of diesel plant (Fig. 2). Data evaluate for 15 years from 2003
to 2017.equations may result from revisions. Please double check the numbering of these elements before you submit
your paper to your proceedings editor.

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 Data Collection

Conducted to gather all data required from Larona River cascade hydroelectric power plant. Type of data collected
separate into primary data and secondary data. Primary data were collected to evaluate the operation performance.
Available data stored in the cascade hydroelectric power plant server. The primary data as follow: water consumption,
forecast electricity production, actual electricity production, hydroelectric power plant availability time, hydroelectric
power plant utilization time, nickel production and electricity production cost. All the data collected into yearly
average.
Secondary data was collected to support the evaluation. Design information, reports, studies, journal, literatures
and also information from web site collected as references.

FIGURE 2. Flowchart of the evaluation

Non-Financial Evaluation

Non-financial aspect evaluates the efficiency and operation performance of the cascade hydroelectric power plant
compare with the nickel production from the smelting plant. The objective is set as the evaluation of the following
performance measure:
 Water consumption rate: amount of water consumption (m3) to produce 1 MWH electricity.
 Operation capacity factor: percentage of actual electricity production compare with forecast electricity
production for 1 year.
 Physical HEPP availability: percentage availability time to produce electricity with consider the actual plan
outage, force outage by maintenance and force outage by operation compare with total operating hours for 1
year.
 Nickel production rate: the ability of smelting plant to produce nickel (ton) for every 1 MWH of electricity
used.
Evaluation will analyze trend line of the non-financial performance on the period operation cascade hydroelectric
power plant support by 3-unit HEPP compare with 2-unit HEPP.

Financial Evaluation
Financial evaluation measures the performance of economic operation of the cascade hydroelectric power plant
compare with utilization of diesel plant. Evaluation also will analyze trend line of operating cost on the period
operation cascade hydroelectric power plant support by 3-unit HEPP compare with 2-unit HEPP and impact utilization
of diesel plant.

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 RESULT AND DISCUSSION

Water Consumption Rate

FIGURE 3. Amount of water consumption for energy generation

As seen on Fig. 3 above, curves are changes when 2 cascade hydroelectric power plant operate (from 2003-2010)
compare with 3 cascade operate (from 2011-2017). The average water consumption in the Larona HEPP when 2
cascade operate 3047 m3/MWH and the water consumption decrease to 2975 m3/MWH when 3 cascade operate
(decrease around 2.36%). Same with Balambano HEPP, the average water consumption 4734 m3/MWH when 2
cascade operate and then decrease to 4697 m3/MWH when 3 cascade operate. It means the efficiency of the unit in
term of water consumption getting better. Also, it shown in the total cascade HEPP, the increasing of water
consumption with additional Karebbe HEPP average around 7.62%, from 3744 m3/MWH to 4029 m3/MWH.

Operation Capacity Factor

With the commissioned of Karebbe HEPP in 2011, the average electricity production from the cascade
hydroelectric power plant only increased 23.4% compare with the electricity production when Karebbe HEPP not
operate yet. However, electricity production from Larona HEPP decreased 2.93% when 3 cascade HEPP operate.
Same with Balambano HEPP, average electricity production decrease 10.19% when 3 cascade HEPP operate.
Meanwhile, as seen on Fig. 5, the trend of operation capacity factor only increases 17% with additional Karebbe
HEPP. Operation capacity factor when 2 cascade HEPP operate 109%, compare with 126% when 3 cascade HEPP
running.

FIGURE 4. Larona river cascade hydroelectric power plant – efficiency production profile

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 FIGURE 5. Larona river cascade hydroelectric power plant – operation capacity factor

Physical Availability HEPP

Result of data evaluation for physical availability HEPP shown on Fig. 6. No significant improvement of physical
availability after the Karebbe HEPP commissioned. In fact, average physical availability for Larona HEPP decreased
from 96.66% on period operation 2003-2010 when 2 cascade HEPP operate to 95.75% on period operation 2011-2017
when 3 cascade HEPP operate. Average physical availability for Balambano HEPP increase from 96.92% on period
operation 2003-2010 when 2 cascade HEPP operate to 98.15% on period operation 2011-2017 when 3 cascade HEPP
operate. However, the average physical availability for overall cascade HEPP decrease from 96.78% on period
operation 2003-2010 to 96.58% on period operation 2011-2017.

FIGURE 6. Larona river cascade hydroelectric power plant – physical availability

Nickel Production Rate

As shown on Fig. 7, the trend line of nickel production on period operation 2003-2010 not consistent (up and
down). Compare with nickel production on period operation 2011-2017, the trend line increases. Average nickel
production 71,937 ton on period operation 2003-2010 compare with 71,971-ton nickel production on period operation
2011-2017. However, the nickel production rate decreases 19% from 36.3 kg/MWH on period operation 2003-2010
to 29.6 kg/MWH nickel production on period operation 2011-2017 as shown on Fig. 8.

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 FIGURE 7. Nickel production from smelting process

FIGURE 8. Nickel production rate

Operating Cost Performance

Electricity production cost from cascade HEPP increase 35% with additional Karebbe HEPP operate on period
operation 2011-2017. However, the production cost of utilization diesel plant decreases very significant 74% on period
operation 2011-2017 after Karebbe HEPP commissioned. Also, the total electricity production cost decrease 63% on
period operation 2011-2017 as shown on Fig. 9.
As shown on Fig. 10, the average cost performance for hydroelectric increase 9% on period operation 2011-2017.
Average US$ 1.48/MWH on period operation 2003-2010 become US$ 1.62/MWH after 2011 when Karebbe HEPP
commissioned.

FIGURE 9. Electricity production cost – cascade hydroelectric power plant vs. diesel plant

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 FIGURE 10. Larona river cascade hydroelectric power plant – cost performance

TABLE 1. Non-financial and financial evaluation result: hydroelectric power plant for nickel smelter process
Period Operation
No Description Remarks
2003-2010 (2 Cascade HEPP) 2011-2017 (3 Cascade HEPP)
Installed Larona HEPP = 165 MW Larona HEPP = 165 MW
Capacity Balambano HEPP = 110 MW Balambano HEPP = 110 MW Increase
1
Hydroelectric Total = 275 MW Karebbe HEPP = 90 MW 32.7%
Power Plant Total = 365 MW
Water
Increase
2 Consumption Average 3744 m3/MWH Average 4029 m3/MWH
7.62%
Rate
Operating Increase
3 Average 109% Average 126%
Capacity Factor 17%
Physical Decrease
4 Average 96.78% Average 96.58%
Availability 0.2%
Nickel Increase
5 Average 71,397 ton Average 71,971 ton
Production 0.8%
Nickel Decrease
6 Average 36.3 kg/MWH Average 29.6 kg/MWH
Production Rate 19%
Average HEPP = US Average HEPP = US
$2,944,601 $3,974,507
Electricity Decrease
7 Average Diesel = US $ Average Diesel = US $
Production Cost 63%
26,287,327 6,870,623
Total = US $ 29,231,929 Total = US $ 10,845,130
Hydro Cost Increase
8 Average 1.48/MWH Average 1.62/MWH
Performance 9%

CONCLUSION

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. Comparison have been measuring to evaluate
the performance between cascade hydroelectric plant on the period operation support by 2 units (Larona HEPP and
Balambano HEPP) compare with cascade hydroelectric power plant on the period operation support by 3 units (Larona
HEPP, Balambano HEPP and Karebbe HEPP). Data from 2003 to 2010 were collected to describe the performance
on period operation cascade hydroelectric power plant support by 2 units. Data from 2011 to 2017 were collected to
describe the performance on period operation cascade hydroelectric power plant support by 3 units. Several efficiency
measures were chosen to describe the performance of the cascade hydroelectric power plant to deliver electricity for
nickel smelter process. As shown on Table. 1 above, the analysis allows the following conclusions:

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  Excellent efficiency of cascade hydroelectric power plant along the Larona River in term of water
consumption. Cascade HEPP only consume additional 7.62% to generate additional 32.7% power. It is
indicated high utilization of water management during period operation of 3-unit cascade hydroelectric power
plant.
 Inefficiency performance of physical availability cascade hydroelectric power plant, it is indicated increase
operation and maintenance problem during period operation of 3-unit cascade hydroelectric power plant.
Installed capacity increase 32.7%, however the physical availability decreases 0.2%.
 It was found, the additional 90MW from Karebbe HEPP as the last of the cascade hydroelectric power plant
in Larona River is not impacting to increase the average nickel production. From the installed capacity increase
by 32.7%, the nickel production only increases 0.8% with the nickel production rate decreases 19%.
 The significant impact from increased hydroelectric power plant capacity was the cost saving of the electricity
production to support the nickel smelting process. Average 63% cost saving by operate 3-unit cascade
hydroelectric power plant and reducing the utilization of diesel plant.
Given the important role of cascade hydroelectric power plant along the Larona River to deliver electricity for
produce nickel in smelting process, this present evaluation expected to find out the aspect to be further study to
improve the utilization and optimization of cascade hydroelectric power plant. Finally, the result of this research
expected to contribute the further study for optimization of nickel production from smelting process with the lowest
electricity cost.

ACKNOWLEDGMENTS

The authors gratefully acknowledge to Utilities Department PT. Vale Indonesia who assist and provide in the data
compilation for this research. The authors would also like to thank the support from Department of Engineering
Physics, Faculty of Industrial Technology, Institute of Technology Sepuluh November, Surabaya who assist for
publication.

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