Energy Diplomacy: A Budget That Does Not Consume Itself in Others' Bills

The problem with the Palestinian budget is not merely a lack of funding, but a continuous hemorrhage that begins before revenues even reach the treasury. A state that does not hold the keys to its borders may have its policies constrained, but a state that does not possess the key to its own "electricity switch" finds its budget hostage to meters it cannot control. In the Palestinian case, the budget is drained not only through salaries or social commitments, but in its infancy via a structural financial hole called net lending, linked to the dependency of the energy sector and reliance on a single supplier.

Therefore, this article does not present a technical description of the electricity crisis but rather a call to redefine the budget itself by adopting what can be termed "energy diplomacy": transforming the energy sector from a burden that drains the treasury into a sovereign asset that feeds it, considering that independence from the meter is the true entry point for financial decision-making independence.

The clearance... when the meter transforms into a tool of political drainage
The public budget's predicament cannot be understood in isolation from the structure of energy relations with the Israeli side. Palestine imports more than 90% of its electricity needs from the Israeli electricity company, making the energy bill the largest burden on the trade balance. However, the real danger lies not just in the volume of imports, but in the mechanism of forced collection.

Data from the Ministry of Finance indicates that annual deductions of net lending range between 1.0 and 1.2 billion shekels, which are directly and unilaterally deducted from clearance funds before reaching the Palestinian treasury. These amounts, which represent accumulated debts of local authorities and distribution companies resulting from collection malfunctions and high losses, are not discussed or rescheduled, but are cut as a fact of life.

A billion shekels annually is not a mere accounting figure; it is an amount capable of causing structural transformation in the health and education sectors or settling a significant portion of financial arrears, yet it is wasted on consumption bills that do not generate added value but rather deepen the financial and sovereign exposure of the state.

From a drained consumer to a sovereign producer
The real confrontation with this reality does not start with negotiations alone, but with redefining the role of public institutions. Instead of remaining state facilities as cost centers consuming energy, they should be transformed into production units that help alleviate the burden on the budget.

If the roofs of schools, hospitals, and ministries were invested in smart solar energy systems connected to the grid, it would be possible in just a few years to eliminate the government electricity bill exceeding 200 million shekels annually. The calculation here is purely economic: an investment equivalent to two years' worth of clearance deductions (about 500 million dollars) in solar energy fields and modern storage stations could generate nearly 40% of Palestinian electricity needs.

This transformation does not only mean reducing expenses but also injecting new liquidity into the economy and building a margin of safety that protects the budget from periodic extortion through clearance.

Energy and digital transformation: the necessary twin
One cannot speak of energy independence without linking it to digital transformation. A significant part of the net lending crisis stems from technical and commercial losses and mismanagement, factors that absorb between 20% and 25% of the purchased energy.

Here, digitization is not a technical luxury but a sovereign tool. Smart networks and prepaid meters linked to unified electronic payment systems allow tracking financial flows from the end consumer to the treasury, preventing debt accumulation in local authority channels. When energy is managed digitally, the state becomes capable of predicting, planning, and reducing losses that eat up hundreds of millions annually.

Energy diplomacy... diversifying sources as a sovereign act
The concept of energy diplomacy transcends solar panels to include breaking the absolute monopoly and building balance in supply sources. This includes accelerating electrical connectivity with Jordan, which provides Arab depth and reduces costs, alongside the need to develop the Gaza Marine field as the most important sovereign project. Introducing Palestinian gas into generating stations will save hundreds of millions currently wasted on high-cost imported fuel.

Moreover, it requires incentivizing policies that encourage the private sector to invest in green energy, transforming society from an energy importer to a producer and trader.

The social impact: when the budget serves the people
When we speak of saving a billion shekels annually from the energy bill, we are not discussing abstract figures but social stability. This saving means regular salaries, improved health services, and support for small and medium-sized enterprises struggling with high operating costs.

Energy sovereignty is not just a technical issue, but a social sovereignty that protects the citizen from political fluctuations and economic pressures.

In conclusion: meter independence is decision independence
A budget that consumes itself in others' bills is a budget without a future, content with managing poverty instead of creating wealth. Energy diplomacy means shifting from a consuming authority mindset to a productive state mentality. The liberation of the budget from the burden of the electricity bill is the necessary entry point for restoring financial sovereignty.

The state that lights its schools and hospitals using the efforts of its children and the sun of its land is the only one capable of making its political and economic decisions firmly, away from the extortion of meters and the pressures of deductions.

The upcoming budget must raise one clear slogan:
We do not need temporary funding for bills, but sustainable funding to dispense with them.