Chance-constrained stochastic congestion management of power systems considering uncertainty of wind power and demand side response

•A stochastic optimization model based on chance constraints is proposed for congestion management in the day-ahead market.•An iteration method is proposed to consider transmission losses in the model for congestion management.•Probabilistic power flow based on cumulant method is used to validate the determined dispatch of generators and demand responsive loads.•The proposed model considers the correlation of load demands at different buses and the correlation of the wind power outputs for congestion management.