Financial Risk Reduction and Management of Water Reservoirs Using Forecasts: A Case for Pernambuco, Brazil
Abstract
The financial health and sustainability, ensuring adequate supply, and adapting to climate are fundamental challenges faced by water managers. These challenges are worsened in semi-arid regions with socio-economic pressures, seasonal supply of water, and projected increase in intensity and frequency of droughts. Over time, probabilistic rainfall forecasts are improving and for water managers, it could be key in addressing the above challenges. Using forecasts can also help make informed decisions about future infrastructure. The study proposes a model to minimize cost of water supply (including cost of deficit) given ensemble forecasts. The model can be applied to seasonal to annual ensemble forecasts, to determine the least cost solution. The objective of the model is to evaluate the resiliency and cost associated to supplying water. A case study is conducted in one of the largest reservoirs (Jucazinho) in Pernambuco state, Brazil, and four other reservoirs, which provide water to nineteen municipalities in the Jucazinho system. The state has been in drought since 2011, and the Jucazinho reservoir, has been empty since January 2017. The importance of climate adaptation along with risk management and financial sustainability are important to the state as it is extremely vulnerable to droughts, and has seasonal streamflow. The objectives of the case study are first, to check if streamflow forecasts help reduce future supply costs by comparing k-nearest neighbor ensemble forecasts with a fixed release policy. Second, to determine the value of future infrastructure, a new source of supply from Rio São Francisco, considered to mitigate drought conditions. The study concludes that using forecasts improve the supply and financial sustainability of water, by reducing cost of failure. It also concludes that additional infrastructure can help reduce the risks of failure significantly, but does not guarantee supply during prolonged droughts like the one experienced currently.
- Publication:
-
AGU Fall Meeting Abstracts
- Pub Date:
- December 2017
- Bibcode:
- 2017AGUFM.H11J1340K
- Keywords:
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- 1817 Extreme events;
- HYDROLOGY;
- 1833 Hydroclimatology;
- HYDROLOGY;
- 1880 Water management;
- HYDROLOGY;
- 4315 Monitoring;
- forecasting;
- prediction;
- NATURAL HAZARDS