The deployment of a green power alternative within an isolated network, powered by renewable energy sources, in the “Three North” region of China can facilitate the substitution of high-energy-consuming industrial loads with green power. However, an inadequate power supply configuration may lead to economic and reliability issues. To address this problem, effective capacity allocation within the green power alternative isolated network is proposed. The capacity allocation process starts with the design of a network structure that aligns with local conditions. Subsequently, a capacity allocation model is developed, considering economic factors, renewable energy utilization efficiency, and system reliability. The gray wolf optimizer is enhanced to establish a capacity allocation method for the green power alternative isolated network. This method is then employed to simulate and assess the performance of the network. The results indicate that the green alternative isolated grid can successfully facilitate green power substitution, satisfying the energy requirements of the loads.