A sustainable electricity supply chain inventory model is proposed a power supply teams’ initiatives depended on demand rate under carbon emissions. This paper sustainable supply chain for an electricity inventory system with contains: (a) power produced from power plants; (b) several substations of transmission; (c) several substations of distribution; and (d) customer demand. The production rates depend on demand rate and demand depends on the power supply teams’ initiatives. The energy produced from power plant and spread through several divisions to consumers. Also, we study the actual capacities of transmission rates; actual power generation; actual power distribution. Using inventory theory for developing a new electricity supply chain and we try to develop a new model to deduce an optimal profit. Eventually, considering a numerical study along with sensitivity analysis are considered to instance the present model for the managerial application. © 2018, Curran Associates Inc. All rights reserved.