With the blooming of Internet, scrip system for online system’s resource allocation has been well investigated in the last two decades. Foreseen an active market in the power system, we introduce a scrip system into smart grid. We consider the scenario where the retail agents negotiate with the grid operator to have a better long term tariff. For example. the retail agents can guarantee an upper bound for total load and provide certain range of frequency regulation to the grid. Each user attached to the retail agent should then fulfill its user commitment by providing its EV at some particular time slot. Clearly, real money is not appropriate here considering the fairness issue. More importantly, the retail agent may fail to encourage the users participation with real money. Thus, we implement a scrip system and show that there is a stable -Nash equilibrium in this system. We prove that the equilibrium maximizes the social welfare.

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