SA, NSW in talks for interconnector

South Australia and NSW will start talking on interconnecting power between the two states.

SA energy minister Tom Koutsantonis told reporters after a COAG energy minister's meeting in Melbourne on Friday the two states would talk with their locally-based electricity suppliers on how interconnection might happen.

"That's a big step forward for South Australians, that's a big step forward for the nation because what has occurred over the last 10 years is the market has built renewable energy where the resources are and those resources are trapped in SA," he said.

"The entire country should benefit from SA's renewable resource and help decarbonise the grid."

SA is interconnected with Victoria but during last week's severe weather that caused a statewide blackout, the connection overloaded and shut down.