SYDNEY, Nov 7 (Reuters) - South Australia state power supplier Electranet said on Monday it could cost as much as A$2.5 billion ($1.9 billion) to prevent another blackout like the one in September that left 1.5 million people and thousands of businesses without electricity.
Mining companies, steel mills and metals refineries were among the hardest hit when a barrage of freak lightning storms knocked out the power on Sept. 28 across South Australia state. said it was exploring four options to secure power, including interconnections with neighbouring states, as well as more localised power sources.
BHP Billiton BHP.AX BLT.L was forced to mothball its giant Olympic Dam copper and uranium mine for nearly two weeks, while the operator of the world's biggest lead refinery, Nyrstar, BYR.AX estimates it could lose up to 5 million euros ($5.5 million) after a furnace was damaged in the blackout.
Jacqui McGill, who runs the BHP mine, has urged more power links to neighbouring states. said new links would cost between A$500 million and A$2.5 billion and take five years to complete.
"South Australia needs a long-term solution that will facilitate our energy transformation, while improving system security and placing downward pressure on electricity prices," ElectraNet Chief Executive Steve Masters said.
Olympic Dam was running at full tilt when the storms knocked out four transmission lines. This blacked out the entire state within minutes as wind farms, an interstate power link and gas-fired power stations shut down.
Oz Minerals, OZL.AX which operates one copper mine in the state and is building a second one at a cost of A$975 million ($748 million), has not ruled out installing solar power to supplement energy supplies, but has emphasised that renewable energy on its own was insufficient. government and private partnership from the power sector was formed in the weeks following the blackout to recommend reforms to how power is distributed. A preliminary report is due in December. = 1.3038 Australian dollars) ($1 = 0.9049 euros)