Quantifying the role of Demand Side Management in building energy flexibility: evidence from Smart Readiness Indicator assessment under the EPBD framework

Demand-side management (DSM) is increasingly recognised as an important enabler of building flexibility, yet its contribution to Smart Readiness Indicator (SRI) outcomes remains insufficiently quantified. This study examines how DSM-enabled services are represented within the SRI framework and how they affect both overall smart-readiness performance and the “Energy flexibility and storage” functionality. A structured mapping of DSM-enabled services within the SRI catalogue was combined with a simulation-based case study of an existing public-use building. Of the 54 SRI services, 23 were identified as directly enabling DSM capabilities. These services were analysed through cumulative activation, staged adoption scenarios, cost-weighted pathway comparison, and service-level decomposition. Activation of all DSM-enabled services at their highest DSM-relevant functional levels increased the SRI score from 43.0% to 80.6%, while the Grid-related functionality rose from 15.0% to 100.0%. The results show a non-linear response to staged DSM adoption and a concentrated distribution of effects. Heating-domain services provide the largest individual contributions, while Monitoring and Control services play a key enabling role through coordination and reporting. Cost-weighted comparison indicates that digitally oriented pathways are strongest in SRI-oriented efficiency terms, whereas thermally anchored pathways are particularly relevant for stronger Grid-related gains. The findings confirm that the SRI is structurally sensitive to DSM-enabled flexibility, while remaining a capability-oriented indicator of readiness rather than realised operational performance.