Premier Mike Rann of South Australia says the federal government's scheme to integrate more green energy into Australia's power grid is very good news for their state.

Mr. Rann remarked getting more green energy into the grid was the best step forward into accomplishing higher levels of using renewable energy.

"We welcome a commitment by the prime minister to commit $1 billion for this type of interconnection," said Mr. Rann in a statement this Friday.

He adds that South Australia is currently leading the country in using green energy.

"With just eight per cent of the nation's population, we have done incredibly well in attracting nearly 50 per cent of the nation's grid-connected wind power, about 20 per cent of its solar power and more than 90 per cent of its geothermal developments.

"The development of a greater amount of energy derived from our natural resources -- wind, solar, geothermal and wave -- is only being held back by the inability of private energy companies to sell their product because of transmission problems."

In an announcement related to election campaigns, Australia PM Julia Gillard promised that her administration will shoulder $1 billion in a period of 10 years to ease the integration of renewable energy into the nation's power grid.

A hundred million dollars more will be shelled out to be worked out with financial agencies so more renewable energy projects could be started. Labor also intends to put up a citizens' assembly that would be in charge of determining the community's pulse on the placing a price on carbon energy.

Mr. Rann also said the demand and interest for green energy was growing.

The SA government released a primary report last week indicating that better and more lines of transmission from SA toward the eastern seaboard of the country would pave the way for investment on green energy worth billions of dollars.

"While that will not require state government assistance, the federal government's fund will undoubtedly leverage more interest and a greater private investment in transmission connection from our state into the national grid."