Supply capacity planning has long recognised the uncertainty in forecasting water demand, and the need to plan for climate change is now mainstream. New water supply options are often capital intensive, which means that careful planning in the face of multiple plausible futures is typically worthwhile, while recognising that political concerns also play a role in final decisions.
Water supply options include new dams, rainwater tanks, stormwater harvesting, recycled water, and desalination. Water demand options include permanent and temporary water restrictions, changing water pricing, and supporting adoption of more water efficient fixtures. Reservoir operations may also influence available supply at critical times, and urban water supply options may interact with other uses of water, including hydropower, irrigation, recreation, environmental and cultural. Planning may involve selecting the level of investment/capacity and sequencing of options over time.
Objectives include reliability of supply, maximum shortfall, cost, and greenhouse gas emissions.
Key assumptions about the future include climate change, population growth, discount rates, and changes in prioritisation of objectives.
Approaches
Optimisation is commonly used to identify optimal sequences of investment for multiple plausible futures [1,2], which can be evaluated in terms of their robustness [2].
Sequences of management options can form adaptive pathways, investing only in a first management option while expecting changes to be made during implementation of the plan. Flexibility to change pathways can been explicitly quantified [2].