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The paper presents a set of experiments on the Rolling Horizon Technique (RHT), applied to the management of a multi-reservoir, multipurpose water resources system with over-year behaviour. In the RHT, decisions on releases from reservoirs are taken for a number of time steps ahead (the Forecasting Horizon – FH) through an optimization model, based on the present water availability in reservoirs and on some forecasts of future inflows over the FH. Only the decision concerning the first time step (the current month) is then implemented, as new information on reservoir levels and forecasts becomes available so that the process can start again with updated information. The paper investigates how the quality of forecasts and the length of the FH impact on the effectiveness of the decisions taken. The evaluation exercise is carried out in two different demand scenarios considering some deficit-related indices, such as TSSD, the Sum of Squared Standardized Deficits, over an Operation Horizon (OH) of forty years. The scenarios are designed to evaluate the role of different demand levels (corresponding to higher/lower stress) on system’s behaviour. Results show that in systems with over-year behaviour, effective forecasts (here simulated through the best possible: actually occurred inflows from the current month up to the end of water year) seem to add little value to system’s operation compared to the most naive forecast (average monthly values), especially in contexts characterized by high pressure on resources. Where there is less pressure on resources, good-quality forecasts are more effective to improve operation. A FH of 24 months seems to enhance significantly system’s performances compared to a FH of 12 months, while FHs longer than two years produce no improvements in system’s performances. The paper also tries to define the limits of a finite-horizon operation technique such as the RHT by benchmarking it with an idealistic release schedule obtained by a model that performs allocation with Perfect Foresight over the whole Operation Horizon.

The paper introduces and applies a methodology to screen investments aimed at reducing water supply risks due to hydrologic failures in headwork systems for municipal use, based on the principles of cost-benefit analysis. As risk includes both the probability of a failure and its effect, the methodology combines a simulation module of the system, fed by a stochastic hydrologic input to reproduce the probability distribution of the failures, with a metric for supply failure damage provided by the price – demand relationship for municipal water. Benefits are assessed as the averted damage compared to a base case without investments. This approach is then combined with the classic discounted cashflow approach of cost– benefit analysis to allow for the dynamics of both water supply and demand due to trends in population growth, individual consumption and, above all, planned reduction of losses in water distribution networks. The methodology is applied to screen a number of different supply-side projects for the headwork system supplying Apulia, in southern Italy featuring both regulated surface and groundwater resources and providing drinking water to over 4,000,000 persons. The procedure allows both ranking of single projects by their economical performances and the economic evaluation of combinations of different projects. The study also aims to assess the impact of the selected time scale, of cross-correlation among production sites, and of the specification of the demand function on projects' economic indicators. Results show that each modelling assumption has a considerable impact on the value of the economic indicators in absolute terms, but ranking of the different projects seems to be less sensitive to such modelling aspects.

The main challenge associated to regional water supply systems planning lies in understanding the best infrastructure alternatives to improve service given a certain configuration of the resources system. While cost-effectiveness assessments are still widespread in this type of analyses, they do not account for the fact that, especially in mature systems, service improvements tend to follow the law of marginal diminishing returns, so that a cost – benefit assessment should be preferable. Both costs and benefits can be organized into a cost-benefit analysis (CBA) framework. In a complex system, a model reproducing its topology and characteristics better describes the impacts of the alternatives. In this work some alternatives to improve service in the regional water supply system of Apulia, Southern Italy, are illustrated and compared through CBA. The system has been modelled through AQUATOR, a state-of-the-art simulation software package.