Reliable Power Distribution for Indonesia's Nickel Project: Coordinated MV & LV Delivery by Daqo
2026-04-15
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Daqo Group has successfully commissioned a complete medium- and low-voltage power distribution system for Hanrui's 20,000-tonne-per-year nickel project in Central Sulawesi, Indonesia. With the substation now energized and in live operation, the facility is ready to move toward full production capacity.

Project Background
Located in the Huabao Industrial Park in Central Sulawesi, the project is an important part of Hanrui's global nickel resource strategy. With an annual output capacity of 20,000 tonnes of nickel metal, the facility is positioned to support downstream demand across the new energy and battery supply chain.
As nickel processing operations grow in scale and complexity, power distribution systems must do more than provide basic infrastructure. Reliability, system coordination, and ease of maintenance directly affect how efficiently a plant can be brought online and how consistently it can sustain production over time. Against this backdrop, Hanrui engaged Daqo to deliver a coordinated electrical distribution solution.
Coordinated Electrical Delivery
Daqo's scope covered the full electrical distribution path, from medium-voltage incoming supply to low-voltage end-use distribution. The system includes MV switchgear, LV switchgear, busbar systems, and distribution panels, all delivered within a coordinated electrical architecture designed to support production processes, auxiliary systems, and site-wide infrastructure.
Rather than supplying separate components from different vendors, Daqo managed both the MV and LV scopes through a coordinated engineering and delivery approach. This reduced interface complexity and improved predictability during both commissioning and ongoing operation.
In continuous-process industries such as nickel smelting, power stability is inseparable from production continuity. Unplanned interruptions affect not only equipment availability, but also process integrity itself. By aligning the MV and LV systems within a unified design framework, the project achieved several operational advantages:
More controlled commissioning and system energization
Reduced coordination burden across multiple equipment interfaces
Improved visibility and maintainability throughout the operational lifecycle
Operating Environment and Engineering Challenges
The Central Sulawesi site presents demanding tropical marine conditions, including sustained high temperatures, elevated humidity, and significant exposure to salt-laden air. Each of these factors accelerates insulation degradation, corrosion, and condensation-related failures. Together, they place exceptional stress on electrical equipment and require systems engineered for long-term performance with minimal reliance on frequent maintenance.
Addressing these conditions required a disciplined, environment-first engineering approach across both voltage levels.
Engineering Approach
On the MV side, insulation structures were optimized to extend creepage distances and reduce flashover risk under persistently humid conditions. High-performance insulating materials and active anti-condensation measures were applied to maintain dielectric stability throughout the operating cycle. Enclosures and critical components were manufactured using corrosion-resistant materials with multi-layer protective coatings validated through salt spray testing.
On the LV side, component selection and system design explicitly accounted for thermal and humidity-related performance variations. Derating strategies were applied where necessary, and forced ventilation was integrated to maintain thermal stability under load. Coordinated heating and dehumidification functions within the enclosures address condensation at the source, rather than simply managing its effects afterward.
Across both MV and LV systems, a modular and compartmentalized structure was adopted to enhance fault containment. Busbars, circuit breakers, and cable sections are physically separated to limit fault propagation. Pressure-relief paths and reinforced enclosure structures provide additional protection in the event of internal arc faults - a critical safety consideration in high-availability industrial environments.
In operation, intelligent breakers and monitoring devices provide real-time data on current, voltage, temperature, and equipment status. This continuous condition-monitoring capability supports a predictive maintenance strategy, reducing the risk of unplanned downtime and helping extend asset life.
Project Execution
The project was executed through a clear division of responsibilities between two Daqo entities. Zhenjiang Daqo Intelligent Electric was responsible for the MV scope, supplying UDQ-12kV switchgear and supporting the project from system design through on-site commissioning. Zhenjiang Klockner-Moeller Electric delivered the LV system, including MODAQO-M switchgear, covering design, manufacturing, installation, and commissioning.
This structured division of responsibilities, combined with coordinated cross-scope engineering, ensured consistency across the distribution system and avoided the interface gaps that often arise when MV and LV systems are procured independently.
Delivery & Logistics
The project's modular, standardized design enabled parallel engineering and manufacturing workflows. From technical confirmation to delivery, the full system was completed in approximately 45 days, with on-site coordination and commissioning guidance completed within one week - a timeline that reflects the benefits of coordinated project execution.
Given the demands of long-distance sea transport and multiple handling stages, the equipment was packaged with reinforced structural protection and moisture-proof aluminum sealing. It arrived on site free from damage or moisture ingress, allowing commissioning to proceed without delay or remediation.


Conclusion
The successful energization of the substation marks the system's transition into full operational status. Performance under site conditions confirms the suitability of the design for high-temperature, high-humidity, and high-corrosion environments - precisely the conditions that define many of today's most strategically significant industrial projects.
This deployment demonstrates Daqo's ability to deliver integrated MV and LV power distribution systems with consistent engineering, execution, and logistics standards across international markets. As industrial and energy projects continue to expand into more challenging environments worldwide, integrated distribution solutions like these are becoming increasingly important for achieving reliable and predictable project outcomes.
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