Abstract This study assesses the potential of energy flexibility of space heating and cooling for a typical household under different geographical conditions in Portugal. The proposed approach modifies the demand through the optimization of the thermostat settings using a genetic algorithm to reduce either operational costs or interaction with the grid. The results show that the used energy flexibility indicator expresses the available potential and that flexibility depends on several factors, namely: i) thermal inertia of the archetypical household; ii) the time of use electricity tariffs; iii) users’ comfort boundaries; and iv) the geographical location of the houses.