Limited transmission capacity may lead to network congestion which results in wind curtailment during periods of high availability of wind. Conventional congestion management techniques usually involve generation management which may not always benefit large wind farms. This paper investigates the problem in detail and presents an improved methodology to quantify the latent scheduling capacity of a power system taking into account stochastic variation in line-thermal rating, intermittency of wind, and mitigating the risk of network congestion associated with high penetration of wind. The mathematical model converts conventional thermal constraints to dynamic constraints by using a discretized stochastic penalty function with quadratic approximation of constraint relaxation risk. The uniqueness of the approach is that it can limit the generation to be curtailed or re-dispatch by dynamically enhancing the network latent capacity as per the need. The approach is aimed at strategic planning of power systems in the context of power systems with short to medium length lines with a priori known unit commitment decisions and uses stochastic optimization with a two stage recourse action. Results suggest that a considerable level of wind penetration is possible with dynamic line ratings, without adversely affecting the risk of network congestion. (C) 2015 Elsevier Ltd. All rights reserved.