Along with the rapid transformation of electricity systems and the growing share of weather-dependent renewable energy sources, the role of demand-side flexibility (DSF) is becoming increasingly important. While in traditional electricity systems—which relied primarily on controllable power plants—flexibility was largely provided by the generation side, the high share of renewable energy sources and the decarbonization of the electricity sector now require ever-greater flexibility on the consumer side as well. Demand-side flexibility enables consumers to contribute to maintaining the balance of the electricity system by adjusting the timing or magnitude of their consumption. In doing so, consumers can reduce their energy costs and, in some cases, even generate additional revenue by providing flexibility services.

Demand-side flexibility can take many forms: from tariff systems that encourage the shifting of consumption over time, through participation in regulatory reserve and energy markets, to distribution network flexibility services. In addition to large industrial consumers, households and small businesses are also increasingly able to tap into this flexibility potential, typically through aggregators.

The policy brief on the demand-side flexibility in Hungary is the Hungarian section of a longer report on the Demand Side Flexibility in V4 Countries, prepared as part of the FLEX4CEE project. The report overviews the legal and regulatory framework, market access conditions, tariff structures, technical requirements, and the available flexibility potential in Czechia, Hungary, Poland, and Slovakia, based on a common analytical framework, and with a particular focus on households and small businesses. The study serves as a preliminary assessment and lays the groundwork for a more comprehensive analysis scheduled for completion in December 2026.