USING COST-BENEFIT ANALYSIS TO ASSESS AND COMPARE ECONOMIC INTERESTS OF MULTI-PURPOSES REUSE STRATEGIES CANNES BASIN CASE-STUDY

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1 USING COST-BENEFIT ANALYSIS TO ASSESS AND COMPARE ECONOMIC INTERESTS OF MULTI-PURPOSES REUSE STRATEGIES CANNES BASIN CASE-STUDY 12/06/2018 Declercq R. (ECOFILAE), Loubier S. (IRSTEA), Condom N. (Ecofilae) 6/18/2018 1

2 Cannes, it is a festival but also 6/18/ IWARESA 2018 Murcia

3 green areas that have to be green all year long 6/18/

4 Irrigated high added-value crops Pascal Guyot AFP 6/18/ IWARESA 2018 Murcia Musée International de la Parfumerie, Grasse

5 Securing potable water supply : a performing system but under growing pressure A.B.J. archives.nicematin.com 6/18/2018 5

6 WELLS for potable water and agriculture irrigation SIAGNE and BEAL RIVERS The Siagne Low Valley in the french rivera CANNES CITY LOW SIAGNE for potable water and Golf Course irrigation Aquaviva WWTP MANDELIEU CITY WWTP SALINITY WEDGE Biomembrane 16 Mm 3 /year Quality fit for agriculture and green areas irrigation 6/18/ IWARESA 2018 Murcia 2 km

7 Decision making process for TWW reuse strategy THEIR QUESTION : What is the most sustainable and profitable strategy to valorize and reuse reclaimed water? OUR QUESTION : What decision methods and indicators are adapted to Cannes decision makers? 1) Co-construction of reclaimed water Reuse Scenarios with local stakeholders 2) Profitability and sustainability assessment 6/18/2018 7

8 Scenario 1 Golf course Golf course irrigation SIAGNE and BEAL RIVERS = m 3 /year CANNES CITY MANDELIEU CITY WWTP GOLF OLD COURSE 6/18/ IWARESA 2018 Murcia 2 km

9 Scenario 2 Urban uses SIAGNE and BEAL RIVERS URBAN DUAL NETWORK CANNES CITY Green areas irrigation + Urban washing (waste containers, streets, boats, cars, planes ) Urban dual network = m 3 /year MANDELIEU CITY WWTP 6/18/ IWARESA 2018 Murcia 2 km

10 Scenario 3 Golf course and Urban uses SIAGNE and BEAL RIVERS URBAN DUAL NETWORK CANNES CITY Golf course irrigation + Green areas irrigation + Urban washing (waste containers, streets, boats, cars, planes ) Urban dual network MANDELIEU CITY WWTP GOLF OLD COURSE = m 3 /year 6/18/ IWARESA 2018 Murcia 2 km

11 GROUNDWATER RECHARGE Scenario 4 - Indirect potable reuse SIAGNE AND BEAL RECHARGE SIAGNE and BEAL RIVERS Recharge : m 3 /day during 4 critical months CANNES CITY m 3 /year Siagne : m 3 /year Béal : m 3 /year GW : m 3 /year MANDELIEU CITY WWTP 6/18/ IWARESA 2018 Murcia 2 km

12 Scenario 5 Multiple uses SIAGNE AND BEAL RECHARGE SIAGNE and BEAL RIVERS AGRICULTURE URBAN DUAL NETWORK CANNES CITY Golf course irrigation + Green areas irrigation Urban washing Urban dual network + Surface water recharge + Agriculture irrigation MANDELIEU CITY WWTP GOLF OLD COURSE = m 3 /year 6/18/ IWARESA 2018 Murcia 2 km

13 Profitability assessment Cost-Benefit Analysis (CBA) NPV (Net Present Value) Environmental impacts Not included in CBA Financial analysis Cost price /m 3 Present costs - Potable water production 1,20 /m 3 - Golf is 0,31 /m 3 6/18/

14 Profitability assessment Environmental impacts Not included in CBA 6/18/

15 Environmental benefits Scénario 1 GOLF Scénario 2 URBAN USES Scénario 3 GOLF + URBAN USES Scénario 4 RECHARGE (INDIRECT REUSE) Sustain Siagne flow (Golf released volume) / Sustain Siagne flow (Golf released volume) Sustain flow and improve quality : Siagne, Béal et GW (Limit rises of salts in GW) Scénario 5 MUTI-USES Sustain Siagne flow (Golf released volume) + Sustain flow and improve quality : Siagne and Béal + Stop agriculture uptakes in GW 6/18/

16 Profitability assessment Cost-Benefit Analysis (CBA) NPV (Net Present Value) Financial analysis Cost price /m 3 Present costs - Potable water production 1,20 /m 3 - Golf is 0,31 /m 3 6/18/

17 Benefit for potable water (CBA) Avoided cost of production SCENARIOS 4 and 5 SCENARIOS RECHARGE + 1 MULTI-USES and 3 SCENARIO URBAN 2 - URBAN USES USES + GOLF Y Present potable water consumption Y Avoided costs of production and of mobilization from alternative water resources /m 3 6/18/

18 ECONOMIC ANALYSIS (CBA) - NPV SCENARIO 1 NPV > 0 But 0,64 /m 3 >> 0,31 /m 3 FINANCIAL ANALYSIS - Price cost 6/18/

19 ECONOMIC ANALYSIS (CBA) - NPV SCENARIO 2 NPV < 0 FINANCIAL ANALYSIS - Price cost 6/18/

20 ECONOMIC ANALYSIS (CBA) - NPV SCENARIO 3 : NPV > 0 If price set at 0,31 /m 3 for the Golf Then price for urban uses = 1,10 / m 3 FINANCIAL ANALYSIS - Price cost 6/18/

21 ECONOMIC ANALYSIS (CBA) - NPV SCENARIO 4 NPV >> 0 and PC = 0,22 /m 3 FINANCIAL ANALYSIS - Price cost 6/18/

22 ECONOMIC ANALYSIS (CBA) - NPV SCENARIO 5 NPV >> 0 PC acceptable FINANCIAL ANALYSIS - Price cost 6/18/

23 NPV SCENARIOS 3, 4 and 5 Economically and financially profitable Price cost 6/18/

24 Sensitivity analysis Monte-Carlo analysis Sensitivity to 15 parameters : increase rate of population, cost of pipes, increase rate of energy ECONOMIC ANALYSIS (CBA) - NPV Higher uncertainty for SCENARIOS 4 and 5 6/18/

25 Conclusions Key indicators used and supplied to the collectivity for reclaimed water reuse Scenario selection: - Economic profitability (NPV - ACB) - Financial profitability (Price cost of reclaimed water) - Environmental benefits quantified But other parameters have to be considered and integrated (organisational complexity, political will, consummers acceptability ) Other Territorial Assessments (CBA and financial analysis) have been carried out on other french sites Methodologies tailored for sustainability assessment at territorial level for reclaimed water reuse need further work and developement (ex : territorial LCA) 6/18/

26 500, rue Jean-François Breton 34093, Montpellier Rémi DECLERCQ remi.declercq@ecofilae.fr 6/18/