Energy systems are undergoing a fundamental transformation in how energy is produced, distributed and consumed. The electrification of heating and transport through the widespread deployment of heat pumps (HPs) and electric vehicles (EVs) is a cornerstone of this transition. Yet, to realize their full potential, these technologies must not only replace fossil fuel systems but also provide flexibility — the ability to adjust their electricity consumption or production to support grid stability and the integration of renewable energy. The additional provision of flexibility can be also facilitated via other demand side appliances.

This report, prepared by the Austrian Institute of Technology (AIT) for the Users TCP and 4E TCP/EDNA Platform, part of the IEA Technology Collaboration Programme, explores how flexibility can be understood, quantified, and enabled in practice. It introduces a high-level model that links technical capabilities, economic drivers, behavioural aspects, and policy frameworks to estimate the overall flexibility potential of distributed assets. Austria served as the pilot country for applying this model, focusing on heat pumps and electric vehicles as representative examples of technologies with significant technical potential