The growing share of variable renewable energy necessitates flexibility in the electricity system, which flexible energy generation, demand side participation and energy storage systems can provide. SIMBLOCK will develop innovative demand response (DR) services for smaller residential and commercial customers, implement and test these services in three pilot sites and transfer successful DR models to customers of Project partners in further European countries. The pilot sites are blocks of highly energy efficient buildings with a diverse range of renewable and cogeneration supply systems and requisite ICT infrastructure that allows direct testing of DR strategies. SIMBLOCK’s main objectives are to specify the technical characteristics of the demand flexibility that will enable dynamic DR; to study the optimal use of the DR capability in the context of market tariffs and RES supply fluctuations; and to develop and implement market access and business models for DR models offered by blocks of buildings with a focus on shifting power to heat applications and optimization of the available energy vectors in buildings. Actions toward achieving these objectives include: quantifying the reliability of bundled flexibility of smaller buildings via pilot site monitoring schemes; combining innovative automated modelling and optimization services with big data analytics to deliver the best real time DR actions, including motivational user interfaces and activation programs; and developing new DR services that take into account the role of pricing, cost effectiveness, data policies, regulations, and market barriers to attain the critical mass needed to effectively access electricity markets. SIMBLOCK’s approach supports the Work Program by maximizing the contribution of buildings and occupants and combining decentralized energy management technology at the blocks of building scale to enable DR, thereby illustrating the benefits achievable (e.g. efficiency, user engagement, cost).