<p>This study addresses the energy issues faced by developing countries and provides strategies to achieve a balance between environmental sustainability and economic growth. Despite their abundant natural resources, numerous developing countries face severe energy poverty, which hinders economic development. This study designs an optimal energy supply chain model that addresses two conflicting goals: improving energy supply chain efficiency and reducing carbon emissions. Based on a mathematical modelling analysis of the case of Pakistan, for designing a sustainable energy supply chain, we suggest location, transportation, and technology as key variables that the literature has not actively studied. These drivers are key considerations for improving energy supply chain efficiency and reducing costs. Thus, resource allocation is optimized, and energy security is enhanced. This study provides actionable insights to policymakers and highlights the importance of strategic energy supply chain management to resolve the dilemma between environmental concerns and economic imperatives. This finding has been validated with policymakers and is useful for developing countries striving to grow their economies while addressing climate change, providing guidelines for future efforts to build integrated energy supply chains in developing countries that include renewable energy.</p>