Energy grid security and stability critical after extreme summer weather, warns Energy Security Board chairman Dr Kerry Schott

The reliability and stability of Australia's power grid is now at a "critical" status according to a report out this morning from the Energy Security Board. 

In its annual health check of the grid, the Board says extreme weather over the summer and strain on ageing coal fired power stations stretched the capacity of the system. 

On the upside, the rapid growth in wind and solar generation could see renewable energy account for 40 percent of consumption by 2040 but that's also posing a threat to keeping the lights on. 

Energy Security Board's chairman Dr Kerry Schott speaks with ABC's Peter Ryan.