Keywords: transboundary water resources, uncertainty, SIP, stochastic integer programming, probability functional, risk minimisation, risk management
A model for risk minimisation on water resource usage failure
We present a framework for solving the strategic problem of assigning transboundary water resources to demand centres under uncertainty in the water exogenous inflow in the reservoirs and other segments of the basin system along the time horizon. The functional to maximise is the probability of satisfying different targets on the stored water and different demands over a set of scenarios. A scenario tree-based scheme is used to represent the Deterministic Equivalent Model (DEM) of the stochastic mixed 0-1 programme with complete recourse. The constraints are modelled by a splitting variable representation via scenarios and, so, a Stochastic Integer Programming (SIP) scheme can be used to exploit the excess probability functional structure as well as the non-anticipativity constraints for the water assignment.