Freshwater resources are limited and seasonally and spatially unevenly distributed. Thus, in water resources management plans, storage reservoirs play a vital role in safeguarding drinking, irrigation, hydropower and livestock water supply. In the last decades, the dams’ negative effects, such as fragmentation of water flow and sediment transport, are considered in decision-making, for achieving an optimal balance between human needs and healthy riverine and coastal ecosystems. Currently, operation of existing reservoirs is challenged by increasing water demand, climate change effects and active storage reduction due to sediment deposition, jeopardizing their supply capacity. This paper proposes a methodological framework to reassess supply capacity and management resilience for an existing reservoir under these challenges. Future projections are derived by plausible climate scenarios and global climate models and by stochastic simulation of historic data. An alternative basic reservoir management scenario with a very low exceedance probability is derived. Excess water volumes are investigated under a probabilistic prism for enabling multiple-purpose water demands. Finally, this method is showcased to the Ladhon Reservoir (Greece). The probable total benefit from water allocated to the various water uses is estimated to assist decision makers in examining the tradeoffs between the probable additional benefit and risk of exceedance.
The loss-averse newsvendor problem with random supply capacity
