The SA Government has struck a $1 billion energy deal with the Commonwealth. 

Scott Morrison announced the $1.08 billion State Energy and Emissions Reduction Deal over the weekend, describing plans to deliver more affordable and reliable power to South Australians.

It is aimed at unlocking gas supplies, kick-starting work on a new interconnector between SA and New South Wales, and funding emissions-reduction projects including hydrogen.

The funding is split, with $660 million coming from the Commonwealth and $422 million from South Australia.

“We're doing everything we can to ensure South Australians get lower cost, more affordable, more reliable energy, but importantly also lower emissions for the future — both here in South Australia and more broadly by backing in the incredible technology that Australia is and will continue to lead the world in,” Mr Morrison said.

“This is a smart state. Lower cost, affordable, reliable energy with lower emissions — that is what is necessary to drive this state forward and Australia forwards.”

South Australian Premier Steven Marshall welcomed the chance for more jobs in SA's energy sector.

“This new agreement for energy and emissions reductions is going to take us to the next level,” Mr Marshall said. 

“It is all about lower cost energy, it's about lower emissions and, importantly, it's about creating jobs in the renewable sector here in our state.”

The deal follows arrangements between the Federal Government and the New South Wales and Tasmanian governments.

South Australia says the commitment will contribute to the state achieving net 100 per cent renewables by 2030.