Urgent reforms needed to power grid currently unable to cope with rise of solar and electric cars, warns gov't energy adviser

The Federal Government's energy adviser is urging dramatic reforms to power distribution networks so they can cope with growing rooftop solar use and the rise of electric vehicles.

The Australian Energy Market Commission wants decisions made about a "grid of the future" that can handle flows from renewables rather than billions of dollars spent on new substations, poles and wires. 

The recommendations come as energy regulators worry about the risk of blackouts with ageing coal-fired power stations reaching the end of their lives. 

AEMC chairman John Pierce speaks with ABC's Peter Ryan.