A new report has claimed dividing transmission from production responsibilities is the best way for emerging renewables markets to secure a competitive power system.
The Danish Energy Agency document also includes recommendations to countries and states facing a significant transition and unbundling of their power sectors.
A key component of the successful Danish liberalisation has been to divide the transmission and production activities in separate entities.
Denmark established the independent transmissions system operator (TSO), Energinet, in 2005 responsible for the transmission of electricity and gas.
This gave producers and developers equal access to the power grid and opened up for new actors to step into the market, according to the report.
The spot market settling the power prices hour by hour has also been an effective way to ensure a cost-efficient use of production capacity, it found.
The report concludes that, while the Danish experience can be of help for other countries and the regulation of their power sectors, it will rely on country-specific adoption.
Unfortunately, there is not one solution proficient to transform any power sector.
However, the Danish experiences set an example of the potential benefits and proves how the liberalisation as a whole successfully has facilitated the Danish green transition, it concluded.