Toward Sustainable Electricity Markets: Capacity-Based Pricing for Electric Vehicle Smart Charging.

This article focuses on a novel information systems (IS)-enabled capacity-based pricing (CBP) model designed to coordinate electric vehicle (EV) charging in urban grids sustainably and efficiently. The CBP scheme dynamically adjusts electricity prices based on EV charging rates and grid capacity, mitigating demand peaks caused by synchronized charging behaviors ("avalanche effects") without requiring extensive iterative learning or detailed knowledge of individual EV owner preferences. Through analytical and computational heuristics, the model enables grid operators to induce desired aggregate charging profiles—including flat demand, complementing household loads, or matching renewable energy generation patterns—while maintaining revenue targets. Evaluated via a multiagent simulation calibrated with real-world data from the Netherlands and renewable generation profiles, the approach outperforms traditional pricing benchmarks by reducing demand volatility, peak loads, and aligning EV charging with renewable availability, thereby supporting grid stability and advancing sustainability goals. The study offers practical implications for grid operators, energy providers, and urban planners seeking scalable, adaptive methods to integrate EVs and renewable energy into smart city infrastructures.