This paper focuses on pricing Energy Storage as a Service (ESaaS) for Transmission congestion relief (TCR). We consider a merchant storage facility that competes in an electricity market to trade energy and ancillary services on a day-to-day basis. The facility also has the opportunity to provide a firm TCR service to a regional network operator under a long-term contract. Providing the additional TCR service would impose limitations on the facility's ability to fully harvest daily market trade

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... opportunities. Thus, we model the opportunity costs associated with the TCR service and use it in a hybrid cost-value customized pricing technique to determine the risk-constrained optimal price of ESaaS for TCR. Given the long-term nature of the commitment to provide the TCR service, we use the Conditional Value at Risk (CVaR) metric to mitigate the long-term financial risks faced by the facility. The proposed pricing strategy enables the storage owner to estimate the additional financial gains and the associated risks that would likely result from adding the new service to its operation. Numerical simulations are provided to support the proposed methodology. INDEX TERMS Energy storage as a service (ESaaS), transmission congestion relief, storage as transmission asset (SATA). NOMENCLATURE PARAMETERS JUAN ARTEAGA (Student Member, IEEE) received the B.E. and M.Eng. degrees in industrial engineering from the Universidad Panamericana, Guadalajara, Mexico, in 2006 and 2008, respectively, and the Ph.D. degree from the Department of Electrical Engineering, University of Calgary, in 2020. His research interests include energy storage economic feasibility, electricity markets modeling, energy efficiency and energy optimization techniques. He has publication in topics related to grid-scale energy storage, ranging from applications of lithium-ion batteries in the grid, to monetizing strategies for energy storage providing multiple services, including planning and operation algorithms, as well as a policy proposal to encourage investment in energy storage. HAMIDREZA ZAREIPOUR (Senior Member, IEEE) received the Ph.D. degree in electrical and computer engineering from the University of Waterloo, Ontario, Canada, in 2006. He is currently a Professor with the University of Calgary, Canada. He leads a research team focused on modeling and integration of bulk energy storage systems into optimal operation and planning practices of electrical grids. He is the past Chair of the IEEE PES Working Group on Business Models for Energy Storage Systems. NIMA AMJADY (Senior Member, IEEE) received the B.Sc., M.Sc., and Ph.D. degrees in electrical