Heriot-Watt University School of Engineering and Physical Sciences MSc in Energy Project / Dissertation 2008-2009

Title:

The cost of water as a function of the supply method and source type, for remote areas in the Aegean Islands. Mr. Kouzoupis Nikolaos - 071256382 Dr. Emilia Kondili (HWU TEIP)

Author: Supervisor:

FLAME
Flexible Learning Advanced Masters in Energy

FLAME
MSc in Energy

Declaration of Authorship
I, Mr. Kouzoupis Nikolaos 071256382 Cohort 3 confirm that the reported entitled The cost of water as a function of the supply method and source type, for remote areas in the Aegean Islands Is part of my assessment for module B49IR

I declare that the report is my own work. I have not copied other material verbatim except in explicit quotes, and I have identified the sources of the material clearly.

Nikolaos Kouzoupis
(Signature)

Piraeus, 10/9/2008
(Place and Date)

Abstract

Water is the most valuable natural resource and its shortage is a serious problem faced by many areas on the planet. The continuously intensifying scarcity of water resources is a crucial problem in almost all contemporary societies, while the problem of water resources management in Greece has been widely discussed in the scientific community. Regardless of the official data, water imbalance is often met, mainly due to the temporal and spatial variations of the precipitation, the increased water demand during the summer months and the difficulty of transporting water due to bad weather (Aegean Islands and Crete) or mountainous terrain (terrestrial areas). In isolated areas, like the Aegean Islands, the high cost of water due to the water shortage, the islands geomorphology and the increase in the population due to tourism during the summer season, has long been an issue that needs addressing.

In terms of the current situation in the Greek water market, one can note that Greece, as a member of the EU has clear and well established legal framework, but implementation and regulation are developing. Various water supply methods have been adopted during the last years, most of them including infrastructure projects, such as dams, desalination units, ground reservoirs, or infrastructure improvement project, such as distribution networks refurbishment. As an emergency solution, increasing water demand has been covered by transfer via ships in the Greek islands. However, there are very significant economic costs associated with this method, as well as the belief that it is completely unsustainable and does not create any infrastructure for the long-term solution.

However, it is rather difficult to evaluate potential alternative water supply methods, mainly due to the fact that their investment and operational cost depend on a large number of parameters. The possible availability of cost functions or at least qualitative parametric analysis of the cost of the most widely applied supply methods would be of valuable assistance in the decision making for water supply projects.

In the present research work, the water sources type and water supply methods used in the above mentioned areas will be analytically discussed and the characteristics of each method
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will be described. The parameters included in the cost functions will be identified and efforts are made for the development of cost functions of each separate method according to the most significant parameters. The supply methods that will be dealt with include dams, desalination units with conventional and renewable energy sources, ground reservoirs and water transportation. For each one of the supply methods, the parameters that affect their cost will be identified and their specific contribution will be approximated. The specific geomorphology, climate and topography characteristics of the Aegean Islands that are being dealt with reflect to different parameters affecting the investment and operational cost, such as the energy that is used, maintenance, repairs, labor etc.

The expected outcome will be cost functions; or, alternatively, cost values ranges will be suggested on current experience and case studies. The cost functions will refer to the investment and the operational cost of these supply methods. It is believed that the outcome of the work will be of valuable assistance for the evaluation of water resources engineering and management projects and will provide some useful data for the water costing in the areas of the Aegean islands.

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Contents Figures..................................................................................................................................VI Tables..................................................................................................................................VII Glossary.............................................................................................................................VIII Acknowledgements.............................................................................................................IX CHAPTER 1 INTRODUCTION.................................................................................................................1 1.1 BACKGROUND TO THE RESEARCH..........................................................................1 1.2 RESEARCH PROBLEM AND/OR HYPOTHESIS........................................................5 1.3 JUSTIFICATION OF THE RESEARCH (INCLUDING AIMS)....................................5 1.4 METHODOLOGY............................................................................................................8 1.5 DELIMITATION OF SCOPE........................................................................................10 1.6 OUTLINE OF THE DISSERTATION...........................................................................10 1.7 SUMMARY....................................................................................................................12 CHAPTER 2 RESEARCH DEFINITION 2.1 INTRODUCTION...........................................................................................................13 2.2 THE PRACTICAL PROBLEM......................................................................................13 2.3 THE THEORETICAL PROBLEM.................................................................................18 2.4 RESEARCH QUESTIONS AND/OR HYPOTHESIS...................................................24 2.5 SUMMARY....................................................................................................................25 CHAPTER 3 METHODOLOGY 3.1 INTRODUCTION...........................................................................................................26 3.2 RESEARCH PROCESS PLAN......................................................................................26 3.3 ETHICAL CONSIDERATIONS ...................................................................................27 3.4 SUMMARY....................................................................................................................28 CHAPTER 4 ANALYSIS AND RESULTS 4.1 INTRODUCTION...........................................................................................................29 4.2 RESULTS OF ANALYSIS: THE FINDINGS...............................................................29 4.2.1 DESCRIPTION OF THE WATER SUPPLY SOURCES...........................................29 4.2.2 DAMS..........................................................................................................................44 4.2.3 GROUND WATER RESERVOIRS / CONSERVATION STORAGE RESERVOIRS......................................................................................................................51 4.2.4 OPERATIONAL COST OF DAMS AND GROUND WATER RESERVOIRS......................................................................................................................60 4.2.5 RESERVE OSMOSIS DESALINATION PLANTS...................................................62 4.2.6 WATER TRANSPORTATION...................................................................................66 4.3 SUMMARY....................................................................................................................70

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CHAPTER 5 DISCUSSION 5.1 INTRODUCTION...........................................................................................................71 5.2 INTERNAL DISCUSSION OF RESULTS....................................................................71 5.3 EXTERNAL DISCUSSION OF RESULTS...................................................................79 5.4 SUMMARY....................................................................................................................83 CHAPTER 6 CONCLUSIONS 6.1 INTRODUCTION...........................................................................................................84 6.2 CONCLUSIONS ABOUT THE RESEARCH PROBLEM...........................................84 6.3 SUMMARY....................................................................................................................86 REFERENCES....................................................................................................................87

Figures
Figure 1.1: Water demand and availability in Aegean Islands..............................................2 Figure 2.1: Water regions of Greece....................................................................................19 Figure 2.2: Available water resource and water uses per water region in Greece...............20 Figure 2.3: Cost comparison of water supply in the Cyclades Islands................................22 Figure 3.1: The research process plan..................................................................................38 Figure 4.1: Dams classification............................................................................................30 Figure 4.2: Membrane types of dams...................................................................................31 Figure 4.3: The operating principle of normal osmosis.......................................................39 Figure 4.4: The operating principle of reserve osmosis.......................................................40 Figure 4.5: Schematic draft of reserve osmosis desalination system...................................41 Figure 4.6: PV RO system to desalinate sweater without batteries..................................42 Figure 4.7: Unit costs vs. dams capacity in Aegean Islands...............................................46 Figure 4.8: Distribution of the investment cost of dams......................................................58 Figure 4.9: Unit costs vs. ground water reservoirs capacity in Aegean Islands.................56 Figure 4.10: Distribution of the investment cost of Agios Georgios ground water reservoir.................................................................................................................................59 Figure 4.11: Distribution of the operational cost of dams and ground water reservoir.......61 Figure 4.12: Total production cost distribution of desalination unit....................................63 Figure 4.13: Total production Cost of reserve osmosis desalination unit............................64 Figure 4.14: Investment cost of reserve osmosis desalination unit......................................65 Figure 4.15: Operational cost of reserve osmosis desalination unit....................................65 Figure 4.16: Total cost distribution of water importation from mainland...........................68 Figure 4.17: Cyclades water transport seasonality in 2004.................................................70 Figure 5.1: Cross-comparison of water cost from dams versus ground water reservoirs....77 Figure 5.2: Unit costs versus total installed capacity by the reserve osmosis process........81

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Tables
Table 4.1: Installed desalination units in Cyclades and Dodecanese...................................38 Table 4.2: Water cost from dams.........................................................................................44 Table 4.3: Investment cost parameterization of Aposselemis dam, Crete Heraklion.......49 Table 4.4: Investment cost parameterization of Gadouras dam, Rhodes.............................50 Table 4.5: Water cost from ground water reservoirs............................................................52 Table 4.6: Investment cost parameterization of Agios Georgios ground water reservoir, Crete-Lassithi........................................................................................................................58 Table 4.7: Water treatment plant cost and energy requirements per cubic meter of a dam based upon the volumetric capacity of the installation for Aegean Islands..........................62 Table 4.8: Water cost and energy requirements from reserve osmosis desalination plant based upon the volumetric capacity of the installation, for Aegean Island...........................66 Table 4.9: Water transported to arid Islands for the year 2004............................................67 Table 4.10: Water transportation cost and energy required, according to the volumetric capacity of transferred water, for Aegean Islands.................................................................69 Table 4.11: Seasonality of water transport to Cyclades for the year 2004...........................69 Table 5.1: Evaluation of alternative water supply methods.................................................72 Table 5.2: Selection criteria of water supply methods.........................................................73 Table 5.3: The factors affecting the cost of water from dams in terms of investment and operational cost.....................................................................................................................74 Table 5.4: The factors affecting the cost of water from ground water reservoirs in terms of investment and operational cost............................................................................................74 Table 5.5: The factors affecting the cost of water from desalination plants with conventional and renewable energy sources in terms of investment and operational cost...75 Table 5.6: Investment cost comparison. Desalination plants versus water transportation...78 Table 5.7: Production cost comparison. Desalination plants versus water transportation...79 Table 5.8: Cost of seawater desalination according to the size of plant..............................82

VII

Glossary C CO2 kg kWh m3 m3/d PV RES RO TDS WTP WTW

Degree Celsius Carbon Dioxide; the main Greenhouse gas kilogram kilowatt-hour (1 kWh = 3,600 kJ = 3.6 MJ) cubic meter Volumetric Capacity (cubic meter per day) Photovoltaic system Renewable Energy Sources Reserve Osmosis desalination system Total Dissolved Solids Water Treatment Plant Water Treatment Works

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Acknowledgements

I would like to thank my supervisor Dr. Emilia Kondili for her continuous support and excellent advice throughout the research; Dr. Phil Skittides and Mr. Alastair Fisher for editing and proofreading the text. I would also like to express my gratitude and appreciation to Mr. Antonios Kotsonis who gave me significant guidance and access to technoeconomical official documents and studies from the Hellenic Ministry for the Environment, Physical Planning and Public Works.

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CHAPTER 1

INTODUCTION

1.1 BACKGROUND TO THE RESEARCH

Water is the most valuable natural resource and its shortage is a serious problem faced by many areas on the planet. Water supply chain management and optimisation are evolving as the most difficult and urgent problems in this field (Voivontas et al, 2003). Mediterranean countries invested heavily in irrigation schemes in order to confront the water shortage problem, although the water quality in many countries is likewise a major issue that even directly induces the improvement of food safety (Chohin-Kuper et al., 2003). In many Greek areas and, particularly in the Aegean islands, the water shortage problem is acute due to their geomorphology, low precipitation and seasonal population increase. In recent years, the water supply problems have significantly deteriorated due to the following parameters that the islands of the Aegean confront. 1.) The existence of a consequential xerothermic period which has as a characteristic the low precipitation rate. This effect is the low performance (qualitative and quantitative) of the existing drills, the non draw down of the existent conservation storage reservoirs, etc. 2.) High water demand, namely from a rural livestock farming economy to a service provision economy (hotels, lodgements, restaurants, bars, etc.). 3.) Seasonal increase in tourist population particularly during the summer season. 4.) The annulment of the traditional reservoirs for the collection and storage of rain water at each household; this kind of reservoir was capable of covering all domestic needs. 5.) The loss of the transferred water in the supply networks due to the age of the networks. By certain estimations, the percentage of these losses exceeds 30% of the transferred water (Avagianos, 2001).

The quantitative difference between the water demand and the corresponding availability on the Cyclades Island group are represented in Figure 1.1, illustrating the magnitude of the size of the problem.

Figure 1.1: Water demand and availability in Aegean Islands. (Source: Kondili & Kaldellis, 2006)

The well known solutions for the confrontation of the water shortage problem and, therefore, the various supply methods that are used worldwide and described in any textbook of hydrogeology science, are listed below:

1. Water Drills, 2. Dams, 3. Off-river lake reservoirs, 4. Interception dams to collect water, 5. Desalination, and 6. Water transportation.

In Greece the first dam was built on the coastline of western Aitoloakarnania, in ancient Alyzia. The dam is dated to the 1st B.C. century and it has been maintained as a visiting monument until today. Nowadays, there are up in excess of 150 big and 150 small dams constructed in Greece (Bournatzi, 2008). The main aims for the construction of a water reservoir plant are relatively close to those for the installation of a dam. Generally, geophysical, climatic, hydrologic, socio-economic, water use and facilities prospecting data
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methods are commonly used from scientists to determine the final selection (Georgakakos, 2007). Dams are usually built in areas, which are close to the upper and middle part of rivers (Savvaidis, et al. 1999).

The idea of water reservoir development in Greece is not recent, but represents an old and traditional way for the storage of water in winter and its consumption in summer. Generally, it is known that in several regions of our country and mainly in the Aegean Islands, small water cisterns (for pluvial water collection) have been installed in order to cover individual needs. On the contrary, the water reservoir plants are highly varied and for collective usage. For example, in a small village of Chios Island, a big water reservoir plant was constructed forty years ago by local grangers, in order to cover their needs for irrigation. Also, in Pantanassa village of Lakonia region, an installation with a similar capacity of ten thousand cubic meters was constructed in 1975 (Efthimiou & Theodoropoulos, 1997).

Desalination also goes back to ancient times when Greek sailors used evaporation to purify seawater (Alishiri, 2008). In the last decade desalination has been considered as a solution for potable water needs only for specific water scarcity countries which have cheap fuel at their disposal. Nowadays, desalination is used extensively even in Greece, due to the reduction in desalination cost, and the high cost of dams and water transfer to Greek Islands. Therefore, considering the alternatives, desalination can significantly cover or assist the water needs of a small Island. Also, the reduction in the cost of desalination units is due to new developments and improvements in current technologies, particularly in Reserve Osmosis (RO) technology (Reddy & Ghaffour, 2007).

For a long time, increasing water demand was covered by transfer via ships between the Greek islands. However, there are very significant economic costs associated with this method, as well as the belief that it is completely unsustainable and does not create any infrastructure for a long-term solution (Kondili & Kaldellis, 2006). The supply augmentation options that have been implemented in mainland Greece are suitable for the small Islands of the Aegean Sea and are as follows (Manoli, et al., 2003): 1.) Desalination, and desalination using Renewable Energy Sources,
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2.) Mobile floating desalination, 3.) Construction of dams and surface storage reservoirs, 4.) Exploitation of groundwater resources through boreholes, 5.) Water transfer (via vessels), and 6.) Waste water reclamation and reuse.

Water supply methods burden local authorities with a specific cost, and in proportion to the total annual cost of each process, one can accomplish a decision making process related to the components of the operational cost and, definitely, to the cost of the initial investment. More specifically, in our case the cost depends on local conditions and the seasonality of demand. The interdependencies in the Integrated Water Resources Management (IWRM) concerns a link between water resources, water used and water services, creating a chain (Manoli, et al., 2003). The specific geomorphology, climate and topography characteristics of the Aegean Islands that are being dealt with, engender different parameters affecting the operational cost, such as the energy that is used, maintenance, repairs, labor etc. However, the water cost evaluation procedure that is widely used, suggests alternatives for the supply augmentation (Manoli, et al., 2003): 1.) Economic Evaluation for water costing: a. Production cost i. Capital Cost ii. Operational and Maintenance Costs b. Lifetime Analysis c. Financing Mechanisms 2.) Technical Considerations: a. Equipment reliability b. Experience c. Dependence on climate conditions d. Flexibility e. Construction Period, and f. Quality issues 3.) Environmental/Social issues, namely main impacts on: a. Ecosystems
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b. Aquifers c. Air quality

Thus, with a multi-criteria analysis one is led to the optimum solution(s) for each specific area.

1.2 RESEARCH PROBLEM AND/OR HYPOTHESIS

The problem of limited water resources, in Greece and elsewhere, has been widely discussed in the scientific community. In isolated areas, like the Aegean Islands of Greece, the high cost of water due to water shortage, the islands geomorphology and the increase in the population due to tourism during the summer season, has long been an issue that needed addressing. The research problem of this investigation is to derive and discuss analytically the different types of water sources and water supply methods used in the above mentioned areas. Additionally, the characteristics of each method will be expressed as a function of cost. The outcome of this investigation will be a valuable tool for supporting the decision making process for water supply investment for infrastructure development.

1.3 JUSTIFICATION OF THE RESEARCH (INCLUDING AIMS)

Regional development and the preserve of natural balance are the essential issues that concern the sourcing of water, in the current environmental climate. Although it is a renewable resource, peoples overuse engenders great pressure and strain on water supply in current situations. In addition to this, water quality is a complex issue, involving diminished water availability and the scarcity of resources in general, in remote areas (Avagianos, 2001). Traditionally, water has been a very valuable resource in the Aegean Sea region, as one of most precious natural resources and indispensable for human beings and economic growth (Ranhang & Shouyu, 2008). Hence, the water resources in most of the islands are not sufficient to cover the continuously increasing needs (Kaldellis & Kondili, 2007). The degradation of water quality in Aegean Islands, as a result of the

diminished water availability and therefore its cost, has some specific local features (Avagianos, 2001): a.) The irrational water resource management. b.) The interpenetration of the sea in underground levels due to over-pumping. c.) Small built-up areas and the seasonal increase in population during the summer season, encumber the production and the distribution of soil. d.) Uncontrollable waste disposal sites construction and soil distribution. e.) Interspersed agricultural and fodder plants of small potential. f.) Restricted industrial plants g.) Contention for the ensuring of the necessary water quantities. Those specific characteristics demonstrate that it is worthwhile developing a method for water cost determination in real cases. Therefore, we can agree that demand and supply must be kept in a balance; otherwise the water resources for the next generation are seriously endangered (Kaldellis & Kondili, 2007).

From all the above universally acceptable aspects, we can note that the present research will deal with beneficial issues, trying to implement a tool with advantages that concern the proper water costing and, consequently, proper water pricing. The proper water cost (i.e. how efficient the process of pumping and preparing the water for use) results in rational pricing, and is a tool for the ideal conservation of water. Many approximate projects have dealt with the identification of the parameters affecting the cost of water in the Aegean Islands. Specifically, Manoli E., et al. dealt with the parameters affecting the cost of water supply in small Aegean Sea Islands (Manoli, et al., 2003). Also, water supply methods and the source type that is used in the specific area are practically noted by previous works. For example, Chohin-Kuper, A et al. reforms water policies about pricing of water, cost recovery, water demand and impact on agriculture for the improvement of the Mediterranean Sea (Chohin-Kuper et al., 2003). In addition, other similar models have been developed, such as Ranhang, Z. & Shouyu, C. construction and application model, but for urban water resources. (Ranhang & Shouyu, 2008). Therefore, the main processes of our research have already been engaged by the Greek or worldwide scientific community. Furthermore, the fact there has not been a

parallel research to the urban water resource models, into models for water resources on small islands such as the ones of the Aegean, proves the practical validity of this research.

One can evaluate that the main benefits from this research are the accomplishment of a more accurate future prediction of the water cost for every newly project plant, i.e. desalination plants, dams, ground reservoirs, wells, ship transport approach, etc. Also, the evaluation of the existing water supply sources will be a beneficial outcome of the research. The research will interpret each supply methods characteristics as a function of the water cost, defining the water supply methods and source types as well. Considering the existing situation in the Aegean Islands, a more rational management of all water resources due to economical optimization is definitely required. However, we can suggest that there are good prospects that the outcome of the research will be significant for future projects and therefore, as a result of undertaking this work, there will be only beneficial consequences.

Water supply problems are in many cases confronted by way of the development of new infrastructure projects. Furthermore, there may be more than one alternative type of project that could be constructed. In any case, the final decision includes not only technical but also economic aspects and the cost of the resulting investment should be evaluated on a long time-horizon basis.

Therefore, the main aim of this project is to create a method for calculating the cost of the water from each separate water supply method that will aid the process of the optimal selection of the most suitable water supply project and also the operational cost of the water. To that effect the parameters that affect water cost and the resulting cost functions will be determined and validated in specific cases studies. As a result of the process, a valuable tool to support the decision making process for a water supply investment in the Aegean Islands will be developed. The sub-objectives (main steps) to achieve this aim were: To specify the types of the problem that will be approached, i.e. in which cases we will develop water costing methods, i.e. specify the limits and the extent of the work.

To work out the selection of the problems that will be examined, i.e. for which types of water supply usage combinations we will develop costing tools for. To identify the parameters of the problem in each case. To identify the parameters affecting the cost of water. To determine the proper costing method and model for each specific case in order to implement case studies. The final step is to validate the results of the project.

In order to accomplish the main aim/objective, or during the above procedure, one should also investigate the present state of the water supplies that are used in the Aegean Islands, and to determine the cost of each water supply method using official data. Likewise, one is able to study and to analyze if there are available technologies which lead to lower water costs than the cost of the current systems that are being used in the corresponding area.

1.4 METHODOLOGY

Describing the present research, one can say that its primary aim is to solve a particular problem; Engestrm (1999) is concerned with discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe, therefore, it can be characterized as applied research. The research process planning procedure comprises four main steps that constitute the methodology of the research (Skittides & Koiliari, 2006) as follows.

The first step constitutes the research approach method selection that, definitely, presupposes the proposed title selection. The present research is an empirical research, namely it is based on the implementation of results. Next, the inductive approach has been adopted, because the data that we are able to collect, infer a general theory. This type of empirical research according to Stanbrough (2005) is defined as: The method that starts with many observations of nature, with the goal of finding a few, powerful statements about how nature works (laws and theories). The concept behind this research is based on a researchable relationship between multiple variables, or similarly, multiple parameters in
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our case. The parameters concern the specific localized characteristics that directly or indirectly affect water cost. Therefore, water cost reduction, the central, even pivotal point of the research, is investigated in order to be predictable. However, the empirical research approach is connected with a co-relational research in which, according to Cohen and Manion (1994), a relationship among phenomena is investigated with a view to predict their association.

Secondly, the type of the design that the present research is going to utilize is a survey and case study combination. Initially, we will carry out a survey about the water supply methods that are used in the specific area, namely the water transfer, desalination, desalination with RES, dams and wastewater reuse, presenting the specific costs of each supply method. Accordingly, we will use these costs in order to implement a valuable tool to define the actual variation of the water cost according to some parameters of the specific localized characteristics. These parameters should already be defined. Thus, the research object will consider a present or past situation, positing a forecasting extension of the future, in the context of a diachronic-evolutionary research (Skittides & Koiliari, 2006).

The third element of the research methodology that should be covered is the proposed category of activity. The category of cross-sectional study is also applicable since, according to Skittides and Koiliari (2006), we are going to investigate differences in a set of phenomena at only one time in a small number of settings, and not over time, as the longitudinal category relates. Particularly, the present research, as above mentioned, will provide an answer to the research problem of reducing the cost of water in the Aegean Islands at the present time, investigating the corresponding water supply method and source type, and, therefore it can be described as a cross-sectional case study.

The final step constitutes the data gathering technique/techniques. There are multiple techniques that the researcher has to implement in order to gather the available and correct data. In the present case, we should follow a multiple data gathering selection. The companies and publics files analysis, and also the use of secondary material are the investigative techniques that we are able to apply in order to gather the desirable data. Besides what we have said above, nevertheless, the proposed title of the present research
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claims that it is a qualitative research. As Denzin and Lincoln (2005) state that qualitative research is a situated activity that locates the observer in the world , namely it involves an interpretive and naturalistic approach to the world. Also, as Lazaraton (2003) notes, the qualitative research consists of a set of interpretive material practices that make the world visible. The aim of the qualitative research is to attempt to make sense of, or interpret, phenomena in terms of the meaning people bring to them (Hoepfl, 1997), and more specifically, it may involve the studied use and collection of a variety of empirical materials, such as a case study, personal experience, introspection, life story, interview, artifacts, cultural texts and productions, observational, historical, interactional and visual texts (Denzin and Lincoln, 2005). Accordingly, qualitative researchers deploy a wide range of interconnected interpretive practices, hoping always to get a better understanding of the subject matter at hand. Hence, there is frequently a commitment to using more than one interpretive practice in a study (Miles & Huberman, 1994).

1.5 DELIMITATION OF SCOPE

In the present research work, the type of water sources and supply methods used in the above mentioned areas will be analytically discussed and the characteristics of each method will be described. The parameters included in the cost functions will be identified and efforts will be made for the development of cost functions of each separate method according to the most significant parameters. The results of the work will be validated with integrated case studies for representative Aegean islands to compare the water cost for various alternative water supply methods. Indicatively, islands of average and small size that could support different water supply methods will be taken as the basis for the validation of cost functions.

1.6 OUTLINE OF THE DISSERTATION

The first chapter is an introduction to the present study. The definition of the research problem, the aims, and the justification of the research allows the reader to clearly delimitate the scope of the present work; in addition to the strategic and tactical choices which are explained via the methodology presented in this chapter.
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The second chapter is the main research definition, namely an analysis of the practical and theoretical problems. The defined practical problem describes any possibilities of minimising water cost, and presents a water cost evaluation method. In the context of the theoretical problem the available water resource and water uses per water region in Greece is described, while a cost comparison of the current water supply in the Cyclades Islands is listed as a representative sample. Also, the fundamental description of dams, ground water reservoirs, desalination, and water importation in the case of Aegean Islands in terms of the costs is presented in order to accumulate representative data of each supply source situation in the specific place. The research questions, which will give guidance towards the

practical and theoretical problem clarification, are also listed. Also, in the second chapter the basic characteristics of all available supply sources, namely, dams, ground water reservoirs (conservation storage reservoirs), desalination plants, and, water import are analytically discussed in terms of the conditions on Aegean Islands.

The third chapter contains the research process plan. Furthermore, it consists of certain steps that will be followed during the analysis of the core problem. Also, the ethical considerations of the present research are discussed.

The fourth chapter contains an elaboration of the collected data and the results. An analysis of all water supply sources is carried out with respect to the water cost per cubic meter, and both investment and operational cost of each supply source.

The fifth chapter discusses and analyzes the results. Internal discussion of the results that are presented in the previous chapter is a cross-comparison between the cost of water from dams and ground water reservoirs, and, also, between the cost of water between desalination and water importation. As regards the external discussion, alternative theoretically researched methods for the determination of the water cost from dams or ground water reservoirs are presented. Finally, the implications of the uncertainties in data are discussed.

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The final chapter presents the conclusions of the research work. The conclusions are derived from the analysis carried out in chapter 4 and the discussion in chapter 5 and are in essence the answer to the research problem and research questions by means of cross reference to all the findings.

1.7 SUMMARY

This chapter introduces the current situation and characteristics of the Aegean Islands. More specifically, solutions for facing the water demand in combination with the problems concerning the water shortage and the particular geomorphology of the specific area are presented and utilized. Based on the above justification, the research problem is defined as how we can reduce the cost of water as a function of the supply method and source type in those remote areas. The methodology that will be adopted for finding the appropriate solution to define the cost of water and then to minimise its cost are also described. Finally, the outline of the dissertation is presented.

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CHAPTER 2

RESEARCH DEFINITION

2.1 INTRODUCTION

The research definition concerns the practical and theoretical problems. The following paragraphs try to address the practical problem, namely the reason we are looking for the most economically efficient water source and what needs to be done to define those parameters that affect the cost. Likewise, the theoretical problem concerns the environmental water management in Aegean Islands. Finally, the research questions that will drive the research towards finding an answer to the research problem are presented.

2.2 THE PRACTICAL PROBLEM

The problem environment: The demand for exploiting any contingent water resource as a more economically useful solution than the existent situation; introducing the parameters affecting the cost in the Aegean Islands.

The problem of water shortage in Greece is significantly acute, and particularly in the Aegean Islands, where the water resources are quite limited and the water reserves are not adequate to cover the needs of the population; additionally, the problem deteriorates during the summer months, when the demand increase by a factor of about four or five times at that of the winter level, due to national and international tourism data (Karagiannis & Soldatos, 2007). Water resources must be developed, exploited and used in a sustainable, economically efficient, integrated and multi-purpose manner. Water in production should be considered as economically efficient and a subsidized system should be established. Activities in water resources protection and development and in water service provision should be performed with the participation of all social and economic sectors (MNRE, 2008). Regarding the water cost, the main problem of non conventional resources is that surface and underground water are undervalued or usually subsidized. Given that the non conventional resources appear valued with a real or almost real cost, it is necessary to apply some incentives to encourage the use of these resources (Hernndez, 2006).

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The area under consideration, i.e. Islands of South and Central Aegean Sea, is a semi-arid region (aridity index: 0.30) with precipitation: 380mm/yr (European Communities, 2003). Therefore, the Islands of the Central and South Aegean Sea are characterized as the most arid regions of Greece (Kaldellis, et al., 2004); the aggravating factors of limited run-off potential, and the overexploitation of groundwater resources during summer is the result of the seasonal population increase (Manoli, et al., 2003). In many small Aegean islands the water shortage problem is solved through the transportation of potable water, whereas in the larger islands a significant number of water surface reservoirs and dams are constructed, for the collection of rain water. The yearly amount of transferred water is 2,500,000 m3 (Kaldellis, et al., 2000). Recently, significant interest has been exhibited in the construction of water tanks for the storage of energy in the form of water inventories during the low demand periods, and their exploitation during peak demand periods. The suitability of each one of the alternative water management solutions depends on the specific characteristics of the island, while each solution implies a different cost. (Kaldellis, et al., 2004). Inclusive of the above, prudent water resource exploitation is absolutely necessary. The

interdependencies of the Integrated Water Resources Management (IWRM) that concerns a link between water resources, water uses and water services, creating a chain (Manoli, et al., 2003) can become the guidance in order to gather information concerning corresponding environmental problems. With the implementation of an Integrated Management, one can contrast the current situation of water resources, with the predictable effects in order to decide the cost effectiveness of an investment and all environmental and other impacts.

The problem context: Water cost abatement in remote areas of Aegean Islands.

Water cost reduction is an issue that motivates scientists worldwide because it is related to water destruction. Most certainly, water cost reduction is related to an important benchmark of pricing policies. The contribution of those policies toward economic efficiency is a complex issue but nonetheless remarkable. An efficient policy may be defined as one which maximizes the net benefits accruing to a community from a given course of action, with no consideration paid to the way in which those benefits are distributed. The objective of

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pricing policy could be one or combination of the following (Abu Qdais & Al Nassaym, 2001): 1. To allocate resources efficiently between sectors within the economy and within the sector itself. 2. To satisfy the consideration of equity or the ability to subsidize consumers, especially the poor. 3. To raise revenues to meet financial requirements for providing the service. 4. To subsidize special areas to encourage development. 5. To take into account political consideration for a special area or subsector of the population.

For most countries satisfying these multiple objectives would involve a trade-off. The context of the problem of the present work is to examine the relationship between the price and the cost of water. Considering that in our case the price is dependent on water cost, it is necessary to present some useful relationships. Many researchers have investigated the relationship between the price of water and the consumption level (Abu Qdais & Al Nassaym, 2001).

Babbitt, Donald and Cleasby (1962) have indicated the following relationship (Abu Qdais & Al Nassaym, 2001): C = 21 logQ Where, C =Cost, dollars/1000 ft3 ; Q =rate of water used in thousands of gallons per year.

Walski, Richards, McCall, Deb, and Morgan (1985) developed a model for evaluating the effectiveness of water conservation measures. Among the conservation measures evaluated was the price of water. A reduction factor in water use was calculated as a function of water price elasticity as follows (Abu Qdais & Al Nassaym, 2001): R = 1.0 (P1/P2)e Where, R = reduction factor;
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P1 = initial price; P2 = final price; e = elasticity of demand, which is a measure of how strongly the quantity demanded responds to change in price.

Although Walski et al.(1985) do not give the potential reduction factor that may be achieved by increasing the water price, they indicated that the price has a higher coverage value than other conservation measures such as water conservation devices and public education, which means, that the number of consumers that will react to a change in price is higher than those who will react to other measures (Abu Qdais & Al Nassaym, 2001).

Twort, Law, Crowley, and Ratnyak (1994) suggested the following formula (Abu Qdais & Al Nassaym, 2001): Q = Kpe Where, Q = is the demand at price P per unit of consumption; P = price per unit of consumption; K = constant; e = elasticity of demand.

The water demand elasticity (e) can be calculated as follows: e =Percent change in quantity/Percent change in price Finally, it should be noted that in several cases of increasing the price of water, in many places in the world, there has been a fall in consumption (Abu Qdais & Al Nassaym, 2001).

The problem of interest: What needs to be done to define the parameters affecting the cost of water according to the water supply method and source type.

In order to define the parameters affecting the cost of water we are able to follow a water cost evaluation method. The water cost evaluation procedure that Manoli, et al. use, suggests alternatives for the supply augmentation (Manoli, et al., 2003):

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1.) Economic Evaluation: a. Production cost i. Capital Cost ii. Operational and Maintenance Costs b. Lifetime Analysis c. Financing Mechanisms 2.) Technical Considerations: a. Reliability b. Experience c. Dependence on climate conditions d. Flexibility e. Construction Period, and f. Quality issues 3.) Environmental/Social issues, namely main impacts on: a. Ecosystems b. Aquifers c. Air quality

Thus, with a multi-criteria analysis one is led to the optimum solution(s) for each specific area. Also, a more tangible and detailed model is suggested by Hernndez (2006). The objective of this model is to minimize the total cost necessary to obtain water resources from different sources to satisfy water demand in a region. This optimization model focuses on the comparison of the different cost structures associated with the various alternative water supplies. In this model are included data from the following resources that should be defined: 1. Conventional resources (surface water and underground water), and 2. Non-conventional resources (reclaimed water, desalinated water and transferred water). Finally, these sources can be ranked in terms of their price in different scenarios. If some quantities of water supply are calculated, the model will provide through mathematical programming the optimal price for each water supply type to apply to each of the uses or
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contemplated demands. Likewise, if the water prices are obtained using the principle of Full Cost Recovery, the model could provide the optimal quantities of water to obtain from each one of the considered sources and the optimal quantities to allocate to the different destinations (Hernndez, 2006).

2.3 THE THEORETICAL PROBLEM

The subject: Environmental water management.

The continuously intensifying scarcity of water resources is a crucial problem in almost all contemporary societies (Bithas & Stoforos, 2006). This issue currently affects many regions of the world. Without a significant reversal of economic and social trends, it will become more acute over time (European Communities, 2005). Water resources must be viewed holistically to ensure their sustainability, both in their natural state and in balancing competing demands on them - domestic, agricultural, industrial (including energy), and environmental. Sustainable management of water resources requires systemic, integrated decision-making that recognizes the interdependence of three areas; namely decisions on: land use, our economic and social future, and at the international, national, and local levels (Burton, 2003).

According to water resources legislation (1739/87 for the management of water resources), Greece has been divided into fourteen water regions as follows: West Peloponnese, North Peloponnese, East Peloponnese, West Central Greece, Epirus, Attiki, Central Greece and Evia, Thessaly, West Macedonia, Central Macedonia, East Macedonia, Thrace, Crete and Aegean Islands (Ministry of Development, 1987). The fourteen water regions of Greece are illustrated geographically in Figure 2.1.

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Figure 2.1: Water regions of Greece (Source: European Communities, 2003)

The fact that a precise estimation of the available water resources in Greece has not been made yet is noteworthy. The only available information about this issue is that most authorities agree that the water consumption and use constitute less than ten per cent of the annual precipitation and fifteen per cent of the water potential. Also, it is estimated that the water consumption in Greece increases by more than 3% per year. The major water uses in Greece, as we can see in Figure 2.2 below, are mainly irrigation use and secondly domestic use.

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Figure 2.2: Available water resource and water uses per water region in Greece (Source: European Communities, 2003).

Regardless of the official data, water imbalance is often met, mainly due to the temporal and spatial variations of the precipitation, the increased water demand during the summer months and the difficulty of transporting water due to bad weather (Aegean Islands and Crete) or mountainous terrain (terrestrial areas) (European Communities, 2003). In terms of the current situation in the Greek water market, one can note that Greece, as a member of the EU has a clear and well established legal framework, but implementation and regulation are still developing. The fact that there is no single, over-arching pricing and service regulation system in the country is an indicative example of this slow development and lack of proper implantation of legislation. It is also unlikely that the systems adopted by individual municipalities work faultlessly.

Kaldelis et al. (2004) classify the arid Aegean Islands into three categories based on their average summer season daily water deficit as follows: First category: Average summer fresh water deficit: 1,000-2,500 m/d. These islands are: Koufonisia, Kimolos, Tinos, Milos, Lipsi, Megisti, Nisiros, Patmos, Simi and Halki. Second category: Average summer fresh water deficit: 100-250 m/d.
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These Islands are: Amorgos, Heraklia, Schinousa, Folegandros, Sikinos, Thirasia and Agathonisi. Third category: Average summer fresh water deficit: 10-25 m/d. These Islands are: Donousa, Palionisos (North Kalimnos) and Pserimos.

The Area: The cost of water from all available water resources / infrastructures.

Typically, water use is categorized by its three major uses: agriculture, industry, and domestic consumption often measured as municipal use. In global terms agriculture is seen as the sector that uses the most water. However, in countries with a higher per-capita income, industry accounts for a higher share of water withdrawal according to World Bank estimates (European Communities, 2005).

In Figure 2.1, we observed the allocation of the water regions of Greece, but even in areas where supplies of water are adequate, the problem of scarcity is usually confronted through the deterioration of water quality. Generally, the actual production cost of water in an acceptable quality includes the operational cost (staff wages, cost of energy, expendable materials, etc.), and the fixed accoutrements depreciation. The more reliable cost production data are collected by the Ministry of Aegean Sea which is normally acquainted with both the investment costs for new installations, and the cost for the water transport (Kaldellis, et al., 2004). Therefore, the increase in the costs for certain water uses, and mainly for the indoor use is the result of the decrease in water quality (Bithas & Stoforos, 2006). Before the presentation of the costs analysis according to the corresponding water supply method, it is useful to assign some values which are the foundation of the estimated costs. These values concern the individuals desire and acceptability, and more specificall y: the willingness to pay for a commodity, and the willingness to accept individuals to acquire a resource (Markandya, 2003). The willingness to pay and willingness to accept are determined empirically and range proportionally by country, region or city. The willingness to pay and willingness to accept concepts are fundamentals in order to analyze the basic tools used in any cost analysis, and also to identify how these costs are relevant to the pricing of water (Markandya, 2003).
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The Aegean Islands cover an area of 9,103 km2. Also, the Cyclades Islands are a complex in the Aegean Sea that comprises of 39 Islands (24 inhabited) and cover an area of 2,432 km2. Costs data from previous works can be a representative sample in order to account for the condition of the present situation of water resources management in the Aegean Islands.

Figure 2.3: Cost comparison of water supply in the Cyclades Islands (Source: Manoli, et al., 2003)

All desalination plants are considered to have grown rapidly in the Aegean Islands, developing a cost effective solution for water supply. However, water transfer via vessels is still a widely used old method in areas of the Aegean Islands where no initiatives or appropriations have been taken. Unfortunately, the supply methods like water transfer, where the cost depends on local condition, are obsolete and in need of modern techniques in order to minimize the overall cost and to maximize the profits of the investments concerning water management in remote areas.

The gap in knowledge: The lack of knowledge concerning the implications of using obsolescent water supply methods for remote areas in the Aegean Islands.

After the available data analysis, the results show that the North Aegean Islands have relatively sufficient water resources for the coverage of potable water needs, while there is
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the reasonable possibility of a water shortage for irrigation needs in the near future. On the contrary, in the complex of Cyclades Islands the water shortage problem is fairly acute. Regardless of the official data processing, ground water reservoirs and desalination plants have been constructed in some Islands (Ios, Mykonos). It is also scientifically proven that there are some Islands among the Cyclades, in which the available water resources are not utilized or are underutilized, however, there are other Islands such as Andros and Naxos, which dispose adequate water resources that are efficiently exploited (Kaldellis, et al., 2000).

The gap of knowledge which can be identified is that there is not a standard water cost production allocation system in order to calculate the documentary operational cost of a corresponding installation. Additionally, it is widely accepted that the adoptive pricing policy does not reflect -for social reasons- the actual cost of water, and, therefore, the water shortage problem is not obvious in the local communities. The result is that the residents do not fully realize the water shortage problem (Kaldellis, et al., 2004). Correspondingly, many incorrect opinions and the absence of knowledge of the profits of the investments concerning the water management in remote areas seem to be the main obstacles for any technological innovation. As we have already said, whilst new desalination plants have been installed in some Aegean Islands, there are still remote areas where no initiative has been taken and water transfer via vessels is the only water supply method. Also, the appropriate funding for the creation of alternative projects, such as ground reservoirs, dams and wastewater treatment plants, is not the main priority that has been scheduled. The main parameters that complicate the development of new desalinating or other alternative technologies are listed below (Manoli, et al., 2003):

1.) The quality of the supply water. 2.) The cost of the investments. 3.) The place/ground availability. 4.) The energy demand and availability. 5.) The experience of the staff required.

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Nevertheless, there are many promising parameters that should be taken into account when attempting to subsidize the economical development of the Aegean Islands. An improvement in the infrastructure type of a specific place can boost the development many times over, such as the upgrade of the quality of life, the increase in tourism and the creation of new employment. Therefore, one can estimate all parameters affecting the cost of an investment and the posterior consequences before the final step, but it is obvious that all signs are encouraging, especially in the case of the Aegean Islands.

2.4 RESEARCH QUESTIONS AND/OR HYPOTHESIS

Generally, the research questions are absolutely essential to the investigator in order to determine the basic and specific elements of the research problem. The disaggregation between practical and theoretical problems can be effectively separated by answering the appropriate research questions, while refining, with the most prudent methodological steps, the proper initial research area and the desirable goals. Therefore, the research questions should be accurately and lucidly defined. They are listed below:

1. What is the current situation concerning water resource management in the Aegean Islands? 2. What are the primary and secondary water uses in the Aegean Islands? 3. Which are the current water supply methods that are employed? 4. What alternative technologies are used today worldwide for water supply? 5. Which of these technologies is/are appropriate to implement in the Aegean Islands? 6. What is the relationship between the cost and the price of water in our case? 7. Which parameters affect the cost of the water supply method that is used according to the source type in each case? 8. By how much can we reduce the cost of water and which areas will present obstacles and difficulties?

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2.5 SUMMARY

In the second chapter the research was defined by means of analysing the practical and theoretical problems. The defined practical problem describes any possibilities for minimising water cost, presenting a water cost evaluation method. In the context of the theoretical problem the available water resource and water uses per water region in Greece was analytically described by their basic principles, while a cost comparison of the current water supply in the Cyclades Islands is listed as a representative sample. Finally, the research questions which will give guidance towards the clarification of the practical and theoretical problems are also listed.

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CHAPTER 3

METHODOLOGY

3.1 INTRODUCTION

In this chapter the research process plan has been developed. The overall steps of the project are presented in terms of schematic appearance. The main procedure illustrates how I will be able to achieve the basic goals that are defined in previous chapter(s). Also, this third chapter attempts are made to give descriptions in as much detail as possible, describing all the steps taken and procedures held.

3.2 RESEARCH PROCESS PLAN

The research process plan presents all of the basic steps in order to accomplish the present research. The primary procedure repeats for each supply source that I have already selected. The available supply methods that are mainly used in Aegean Islands are: dams, ground water reservoirs (conservation storage reservoirs), desalination plants, and water transport via tanker boats (water importation).

The initial process for all supply methods concerns the examination of the total production cost of each plant. It is necessary to check if there is an operational cost, and if the answer is yes, I should firstly define the operational cost, and secondly the investment cost. If the answer to the initial question is no, I should directly determine the investment cost of each plant. In case of water importation, considering that there is no investment cost, the term of operational cost concerns the energy requirements. Next, I will parameterize the investment cost in order to define the parameters affecting the cost of water. For that reason, I will collect real data from several dams and ground water reservoirs, while a lengthy literature research will be carried out for desalination plants used in Aegean Islands and water importation options. Finally, estimation for the size of the project in relation with the total production cost of water per cubic meter to be comparable will be made for all available sources. The results will be very useful for the final step of water cost reduction assessment. Referring to specific Island(s), and using all the above selected data we will discuss if there is any water cost reduction option for Aegean Islands.
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Figure 3.1: The research process plan. (Source: The author).

3.3 ETHICAL CONSIDERATIONS

The present research is a technical project that uses data collected from literature research, and is also conducted in an ethical manner by the researcher who has requested permission by the Hellenic Ministry for the Environment, Physical Planning and Public Works. More specifically, the access to official documents carried out with authorization from Mr. Kotsonis Antonios, director of the Ministrys D4 section. The author has been granted access to techno-economical official documents and studies, and is authorized to use and publish the data gathered, however, for educational research reasons only. The good quality of literature sources and the reliability of the data prove the trustworthiness of the research. The progress of the work was always under the supervision of my tutor and hence the explanation of results remained open to suggestions, so as to avoid any ethical problems.
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The project is considered worthwhile since it produces favorable results for the public at large. Also, the present research does not receive any funding, neither use laboratory infrastructure nor other kind of facilities. Therefore, the only ethical issue that one should take into account is that the presented data can be used only for educational research reasons only.

3.4 SUMMARY

In the third chapter the research process plan of the research was presented. The research process plan presents all basic steps in order to accomplish a water reduction assessment for the specific place of Aegean Islands. Each step was analysed, and, finally, the ethical considerations for conducting the research were presented.

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CHAPTER 4

ANALYSIS AND RESULTS

4.1 INTRODUCTION

This chapter contains the presentation and elaboration of gathered data. An analysis of all water supply sources will be carried out in respect to the water cost per cubic meter of each one. In order to accumulate representative data of each supply source situation for the Aegean Islands, I will accomplish an examination of investment cost, for the case of dams and ground reservoirs, and I will parameterize the total production cost of reserve osmosis desalination plants and water importation. The cost results are presented in tables, graphs and pie charts where it is necessary.

4.2 RESULTS OF ANALYSIS: THE FINDINGS

4.2.1 DESCRIPTION OF THE WATER SUPPLY SOURCES

The main available methods, which are most commonly used in the Aegean Islands, ensuring water resources are: dams, ground water reservoirs, desalination units, and water transfer via tanker boats. Dams and water reservoirs are intended to cover the basic irrigation and water supply needs as well as to give an integrated solution to the problem of water management, while desalination constitutes a reliable solution offering good quality potable water in a cost comparable to or lower than other methods (Tzen, 2001). Following, there is a fundamental analysis, and the basic principles of the water resources that this research will take into consideration.

Dams:

A dam is a barrier that can prevent, redirect or decelerate a natural water flow while the primary purpose of a dam is to retain water in a specific place. Usually, for that reason, in addition to the dam construction, many other auxiliary devices are installed, such as, water collectors, reservoirs or even artificial lakes. Dams are classified into various categories depending on their manufacture, operation and feasibility. According to their operation,
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dams can be distinguished as: elevation level of the dams, storage dams, and channeling dams. Also, according to the aim for which they are constructed; they are characterized as: dams for irrigation, water supply, energy production, etc. Dams are classified, by constructional characteristics, according to the following Figure (Dimitriou, 2006).

DAMS Permanent Rigid Gravity Hollow/Cellular Arch Flexible Flap gate Provisional Vertical lift gate

Fill/Embankment Rockfill

Figure 4.1: Dams classification (Source: Dimitriou, 2006)

Generally, dams are constructed in Greece as river water reservoirs, and they are usually from reinforced-concrete caisson (R.C.C) or with clay core, or rockfill dams with uphill plate. For that reason, I will focus this studys interest on rockfill dams. In a 1960 symposium on rockfill dams sponsored by the American Society of Civil Engineers (ASCE), a rockfill dam was defined as (Breitenbach, 2004c): A dam that relies on rock either dumped in lifts or compacted in layers, as a major structural element. An impervious membrane is used as the water barrier and can be placed either within the embankment (internal membrane) or on the upstream slope (external membrane). Various materials have been used for this membrane including earth materials, concrete, steel, asphaltic concrete, and wood. Rockfill dams may be classified into three groups, depending on the location of the membrane (USDI, 1987): 1. Central core, 2. Sloping core, and 3. Upstream membrane, or decked. Each membrane location has its advantages and disadvantages, which vary according to the type of membrane, materials available at the site, and foundation conditions. Central and
30

sloping cores, which are internal membranes, are generally constructed of impervious earth materials. An economic analysis should be carried out in order to determine the type of material to use in constructing the membrane, whether it is internal or external (USDI, 1987). If an internal membrane is selected, a central vertical core is recommended. This type of core provides maximum contact pressure with the foundation and requires less strict construction control than a sloping core. On the other hand, if an external membrane is used, it should be constructed of concrete, asphaltic concrete, or steel.

Figure 4.2: Membrane types of dams (Source: USDI, 1987)

Rockfill dams use rock of all sizes to provide stability and an impervious membrane to provide watertightness. The construction of a RCC dam also includes the diversion, the ground discharge, the spillway and the importation works. The sealing of the foundation is accomplished by the construction of a grout curtain, while in some cases a seal membrane is used (Breitenbach, 2004a). In order to prevent the damage or destruction of the dam by the overflow of water, they have a spillway of adequate capacity. Spillways are provided for storage and detention dams to release surplus water or floodwater that cannot be contained in the allotted storage space. The foundations of rockfill dams are not subjected to settlements large enough to rupture the watertight membrane (Breitenbach, 2004b).
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Therefore, the only suitable foundations are rock or compact sand and gravel that are abundant in the case of the Aegean Islands. Elimination or reduction of transportation expenses for construction materials, particularly those used in great quantities reduce the total cost of the project considerably. The most economical type of dam is often that for which a large quantity of materials can be found within a reasonable distance from the site (USDI, 1987). The existence of the main foundation materials in a specific place can significantly reduce the construction cost, and that is the reason most dams in the Aegean are made of RCC. Likewise, except for the low initial cost that RCC dams have, they also need small construction lead times in comparison with those of other types of dams (Efthimiou & Theodoropoulos, 1997).

The operational costs of dams comprise mainly energy requirements (in case that there is a water treatment plant) and human resources costs. The scheduled maintenance mainly concerns inspections from experts during rapid filling of the reservoir in the downstream slope of the dam or foundation contacts that should carefully be inspected at specified intervals for indications of abnormal condition. During periods of sustained high reservoir level, particular attention should be given to inspecting the visible portions of the upstream face of the dam, crest, downstream face, abutments, and areas downstream from the dam for evidence of abnormal development. Also, the earth embankment of dams should be inspected at regular intervals for evidence of the development of unfavorable conditions. The frequency of inspections may be decreased after several seasons of operation if no abnormal conditions have been observed (USDI, 1987). Therefore, the operational cost for the oldest dams (for irrigation and/or industrial use) is significantly low or negligible. Also occasionally maintenance may be needed after all unusual occurrences, such as sustained periods of high-velocity winds, low infrequent reservoir conditions that expose features normally submerged. However, if the uses of water from a dam are expanded to include potable, it will be necessary to install a water treatment plant in order to transform the water from the dam into high quality drinkable water. The construction of the WTP, namely the water treatment works (WTW), will add a significant investment cost due to the WTP and operational cost due to the energy requirements. The construction of a WTP is an independent project that presupposes an additional investment and operational cost definition of the parameters to both dams and ground water reservoirs.
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The following methods are the most commonly used water treatment technologies: (Cheremisinoff, 2002) 1. Physical methods: a. Heat b. Reserve Osmosis c. Distillation d. Micro filters e. Sand filters f. Other filtration methods g. Activated Carbon 2. Chemical treatment: a. Chloride b. Iodine c. Silver d. Potassium Permanganate e. Coagulation f. Flocculation 3. Energy intensive technologies: a. Ozone b. UV Lighty

Ground water reservoirs / conservation storage reservoirs:

The term water ground reservoir / conservation storage reservoir characterizes an individual type of reservoir that is constructed ordinarily out of the water river bed or at specific areas where the relief allows for the installation of the water storage reservoir with limited magnitude of land works. The conservation storage reservoir structure made by constructing a dam, embankment, or pit, while its purpose is to conserve water by holding it in storage until it is used either to meet crop irrigation requirements or industrial and other secondary urban uses (Ogibin, 1968).

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The reservoir may be a natural or artificial lake that collects and stores water for a specific place, village or island in our case. The main purpose of the water reservoir construction may be irrigation, industrial, or other secondary uses. Nowadays, the alternatives of water importation via ships and ground reservoirs remain the most popular solutions to the water scarcity problem of the Aegean Islands. In addition is the solution of ground reservoirs, which have almost no long-term operating cost (Karagiannis & Soldatos, 2007). If we take into account that most ground reservoirs of the Cyclades and Dodecanese Island complexes are used to retain both rainwater and spring water, augment the aquifer, supply water for agricultural applications (Gikas & Tchobanoglous, 2009), and more rarely for urban water supply, one can note that it is a sustainable and economically profitable solution to the water shortage problem. Generally, the basic steps of the construction of a ground reservoir are: 1.) Collecting works, 2.) Pipeline, and 3.) Main reservoir.

Before the study and construction of the conservation storage reservoir in a specific place starts, a series of mandatory technical requirements should take place that are aimed at the location area identification. The technical requirements concern: the identification of utilized agricultural areas, the siting of possible locations of the installation, and finally, the environmental impact assessment study with a safety audit for possible expropriations and social impacts (Efthimiou & Theodoropoulos, 1997). Evaluating and exploring the proposed reservoir requires that attention be given to all factors that affect reservoir adequacy or use. The principal factors are rim stability, water-holding capability, bank storage, potential sources of pollution, and effects of borrow removal on stability and seepage (USDI, 1987).

The collecting works concern a spillway across the water feed. The purpose of the spillway is to elevate the level of water as well as to collect water. At the settlement of the spillway, an open channel is constructed, through which can travel the water inducted at the main water pipeline as long as, before, it has passed through the sedimentation tank. The

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installation is equipped with a sluice valve/gate in order to control the flow and for its convenient maintenance.

The water is transported from the intake to the storage via the pipeline. The type of the pipeline may be open section or embedded linear tube (Efthimiou & Theodoropoulos, 1997). The selection of the pipeline type should be accomplished according to the data of the specific project. For example, in the case of uneven terrain the correct selection is to use an embedded linear tube pipeline. Additionally, the selected solution depends on the quality of the transferred water. The possible existence of sediment in the water should drive the project owner to use an open section pipeline in order to have the ability to observe and clean the water. On the contrary, if the water is sediment free, the adaptable choice is the embedded pipeline. Generally, the most common pipeline type is the embedded linear tube through its low flow rate. Also, there are some common problems that appear in rough areas, such as the Aegean Islands, that have to confront the measures to be taken in the light of the prevailing circumstances (Parissopoulos, 1994).

As was mentioned above, the main reservoir may be a natural or artificial lake. In the case of an artificial lake and for the construction of the main reservoir, excavation and sideextension works are needed. The materials for the construction of the side-extensions are mainly materials from the excavation, the wider region and borrow areas or quarries if it is difficult to find the appropriate materials. The construction of the main reservoir also includes works that will protect the installation against overflow, the discharge of the reservoir, the water extraction and the air expansion. The most significant part of the ground reservoir construction is the seal membrane (geomembrane) installation. The term geomembrane is characterized by thin plastic leaves with extremely low permeability. The construction materials are persistent synthetic substances from the plastics industry. Other materials that accomplish the main watertightness operation and comprise primary substances should not be confused with geomembranes (i.e. insulation layer from asphalt/cement, aluminum and soil mixture, barrier layers from metal or concrete) (Kollios & Parissopoulos, 1995). Planning and construction of membranes are not governed by severe environmental regulations, because the water use from ground reservoirs is mainly irrigation and other secondary urban uses. Therefore, small amounts of infiltration are
35

effectual, however, with the requirement of temporal stability for the operating lifetime of the installation.

Accounting for the classification of the geomembranes, according to the chemical composition of the polymer, the representative types that are applicable in Greece concern thermoplastic membranes from polyvinilium chloride (PVC), crystal thermoplastic with high or low density polyethylene (HDPE or LDPE) and its products, and, finally, from elastomer thermoplastic with asphalt streak additive (ECB). According to the production procedure of the membranes used for the sealing of the reservoir, there are several categories. The main categories used in Greece are: reinforced prefabricated membranes, prefabricated membranes without reinforcement, and prefabricated membranes with evident reinforcement (Efthimiou & Theodoropoulos, 1997). The procedure of the selection of the appropriate membrane type and characteristics is significantly complex, as there is a variety. Also, the experience in Greece regarding this kind of material is relatively low. Generally, the factors should be taken into account are the specific characteristics of the material such as chemical composition, tensile strength, elongation at yield and strength point, fastness to punch and cropping, and the membrane ground friction angle. Nevertheless, the combination of the membrane type with the rest planning selections should be imperative, such as geotextile use, membrane coverage or not, gradient of slope, underlay and overlay characteristics, maximum depth, etc. (Kollios & Parissopoulos, 1995). A further point of importance in relation with indirect economical consequence is the life time of the geomembranes. The main reasons for the reduction in the life time of geomembranes that, also, may develop structural failure are (Parissopoulos, 1994): 1. Ultraviolet radiation that destroys the polymer creating brittleness, and, therefore, flex cracking or even complete cracking. 2. Deterioration from the effects of chemical substances. 3. The transfer of plasticators or other additive substances from the atmosphere or water to the membrane. (mainly for common PVC membranes) 4. Oxidation. 5. High temperature that increase the polymer mobility developing other tension stress problems with contraction and expansion. 6. Material tension stress in combination with abrasion.
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7. The influence of bacteria and micro-organisms.

Nevertheless, the ageing of PVC under environmental conditions is fast, while the ageing of polyethylene is relatively low. For that reason, geomembranes from PVC should be covered with coating. It is estimated that for a 0.75mm thin HDPE, covered with flat coating, the life time of the installation outstrips the 20 years (Kollios & Parissopoulos, 1995).

Before the installation of the plastic membrane (geomembrane), an underlay from fine materials and a cover with flat coating are generally required. Also, there is the ability to protect the geomembrane from drilling or splitting with the usage of a suitable geotextile. The crucial element for the accomplishment of the geotextile construction is its stability against sliding, while its minimum thickness should not be less than 30cm.

The fitting of the overall sealing system (geomembrane - geotextile) is achieved by the construction of a special anchor ditch. During the geomembrane placement and connection it is necessary to protect it from wind load. The weather condition plays a significant role during the geomembrane spreading, and, therefore, the weather should be mild. The recommended temperature range for the spreading is between 5oC and 40oC. Rain should be avoided during the specific procedure, because it negatively affects the quality of sticking, and the surfaces should not be wet (Efthimiou & Theodoropoulos, 1997).

Desalination units (with conventional and renewable energy sources):

The desalination processes are thermal methods, which use heating water to produce water vapor and membrane processes, which with the utilization of a membrane and the induction of water into two zones of different concentrations, produce potable water (Mohammed, 2005). The first category of thermal processes comprises the following desalting technologies: Multi-Stage Flash distillation (MSF), Multiple-Effect evaporator (ME), and Vapor-compression (VC). Similarly, the most widespread membrane processes are: Electrodialysis reversal (EDR), Reverse Osmosis (RO), Nanofiltration (NF), and Membrane Distillation (MD) (Tsiourtis, 2001).
37

However, the most common desalination technology used in the Aegean Islands is RO, and for some Islands such as Syros, desalination is the main source for urban potable water (Gikas & Tchobanoglous, 2009). The reason is that in regions where the energy is expensive, RO is a favorable choice compared to other thermal processes, due to its lower energy consumption (Zhou & Tol, 2005). The following table shows the installed desalination units in the Cyclades and Dodecanese complexes.

Table 4.1: Installed desalination units in Cyclades and Dodecanese (Source: Karagiannis & Soldatos, 2007)

In order to determine the costs of desalination we should define the main components of the RO process. I have chosen to focus on the RO process, and RO combined with renewable energy sources (RES) because there are the most common technologies in Aegean Islands. Therefore, the components of RO technologies are the following: pumping, pretreatment, microfiltration, chemical conditioning, cartage filtration, reverse osmosis, chemical conditioning (post-treatment), pumping (if required), and transfer piping to distribution system (Gikas & Tchobanoglous, 2009).

38

In analyzing the basic principles of RO technology one should identify the main phenomenon. The osmosis phenomenon is presented when water or a thin salted dissolution that is found in a side of semi-permeable membrane passes via this membrane in higher concentration salt dissolution that is found on the other side. As one can see in Figure 4.3, a semi-permeable membrane is placed between two sections. Semi-permeable means that the membrane is permeable in certain types, and not permeable in other. If we assume that the membrane is permeable to the water and it is not salt permeable. Then, if we place a salt solution in a section, and, correspondingly, the clean water in the other section, the membrane will allow only the water to permeate in the other side that the salt solution is found (Spiegler & Laird, 1980). The salt cannot pass to the clean water side. At this fundamental rule of physics, this system will try to reach its balance; namely, it will try to reach the same concentration both in the two sides of the membrane. The only possible way to achieve the balance is to pass the water from the clean section to the section with the higher contaminant concentration, in order to attenuate the salted solution.

Figure 4.3: The operating principle of normal osmosis (Source: Spiegler & Laird, 1980) Figure 4.4 also shows that normal osmosis can cause a rise in the height of salted solution. This height will be increased until the pressure of the column with salted solution is so high that the force of this aquatic column stops the water flow. This point of balance of the height aquatic column (salted solution), concerning the pressure of water against the membrane, is called osmotic pressure. If a force is applied in this column of salted solution,
39

the direction of the water flow via the membrane can be reversed. This is the basic principle of the reverse osmosis that Figure 4.4 illustrates. In this point, we should mark that this flow produces clean water from the salted dissolution, since the membrane is not permeable in the salt (Spiegler & Laird, 1980).

Figure 4.4: The operating principle of reserve osmosis (Source: Spiegler & Laird, 1980) Industrial RO desalination units process the water that is moved in the special semipermeable membrane with high pressure. The water, while passing through a special chamber (round pipe - container), is compressed around in a central spiral pipe that is the infiltration membrane of water. This is the pressure that is needed to push the water to pass through the membrane in order to become segregated from the undesirable elements of water.

At the current time, the system of RO is the most effective solution for clean and filtered water. It can infiltrate water using technologically special membranes of 0.0001 0.001 micros. Thus, RO can protect the quality of water from impurities that will influence human health, such as heavy metals, lead, salts, chloride, chemical, fertilizers, pathogenic microorganisms, viruses, bacteria and from radioactive waste.

40

The most important advantage of RO when compared with other desalination methods is that the undesirable components are automatically removed via the sewerage, and, thus, do not build-cover the membrane as happens with other desalination methods. This is achieved using a part of input water which rinses the membrane and keeps it clean. Namely, there is an input of water that supplies the system, and, on the other hand, there are two outputs. One output feeds completely clean water and the other removes both water and the undesirable components. This is also the reason that the membranes can mitigate their maintenance cost and life time period.

Figure 4.5: Schematic draft of reserve osmosis desalination system (Source: Eltawil, M., et al, 2009). RO desalination systems can also be combined with RES. RES can provide effective solutions in decreasing the dependence of fossil fuels, particularly in the case of the Aegean Islands where solar, and mainly wind potential, is relatively high. Solar or wind energy can be used as prime sources, driving pumps or directly producing electricity (Kalogirou, 2005). Nevertheless, there are several difficulties in comparing the aforesaid technologies. The problems concern the intermittent character of the wind and the high total system cost (Loupasis, 2002). As regards solar energy, generally, a photovoltaic (PV) panel is used to generate the electricity required to drive the membrane process. The energy collector can be a PV panel or a wind turbine. The system can be designed to operate coupled to the grid (stand-alone) or off-grid (autonomous), and also the system can be designed to operate with or without batteries. In the latter case (See Figure 4.6), power equality should be accomplished between the power supplied by the PV or wind turbine and to that consumed
41

by the RO desalination process. However, this kind of installation (without batteries) is very difficult to realize effectively due to the stochastic behavior that the wind tends to supply and the periodic patters that solar follows (Loupasis, 2002). The energy requirements of RO systems concern the energy that is consumed to pump the feed water at a pressure above the osmotic pressure; however, in practice this pressure is significantly higher reaching 50-80 atm (for seawater), in order to pass a sufficient amount of pressure through the membrane modules (Kalogirou, 2005). This fact develops high energy deficit that the RES is going to cover.

Figure 4.6: PV RO system to desalinate sweater without batteries (Source: Eltawil, M., et al, 2009). According to Loupasis (2002), the viability of any RO desalination unit coupled with RES depends on the following parameters: the siting of the installation (wind or solar potential), the capacity of the desalination plant that will determine the size of the renewable energy

42

system and the land area requirements, the total cost of the system, and, finally, the availability of maintenance and experienced personal on the specific Island.

Manolakos et al. (2008) present a typical PV-RO system for Thirasia Island, with a volumetric capacity of 2160m3/d. The cost of the desalination system presented constitutes about 70% to the total cost, while the cost of energy (PV) system about 30%. The final cost of water was calculated at 7.77/m3. The notable issue is that when conventional energy sources are used for the calculations, the above total cost of desalinated water becomes 2.45/m3, namely, about a 68% lower cost. This dramatic decrease was mainly due to the high initial capital installation cost and various system components of PV are still expensive. Additionally, it is widely accepted that the cost of a PV-RO system is significantly higher than conventional RO, due to fact that RES potential does not always comply with the local stress intensity at a local level, and also due to low sustainability (Eltawil et al., 2009). Eltawil et al. (2009), based on Mathioudakis et als (2007) proposition, states that several attempts to integrate advanced desalination solutions in isolated areas failed due to lack of reliable technical support.

Water transportation:

Water transport is still used in many Aegean Islands as it remains the only way to fulfill the freshwater needs of the Islands. Water transportation from the mainland or other Islands seems to be the most expensive solution for the water supply management in our case, and often depletes the already limited supplies at these locations. Likewise, the limited capacity of the tankers, which in high seasons may not be able to keep up with the demand, causes the volume of the transported water to also be significantly limited. We should also take into account the amounts of the fossil fuels consumed for that reason. As it is widely known, the issue of carbon footprint additionally aggravates the solution of water transport among Islands (Gikas & Tchobanoglous, 2009). Despite these disadvantages, the solution of water transport has been adopted for many arid Aegean Islands for the current time (Karagiannis & Soldatos, 2007).

43

4.2.2 DAMS

Table 4.2 collects the data taken from Hellenic Ministry for the Environment, Physical planning and public works, and from Efthimiou & Theodoropoulos, 1997. The Table shows the calculated cost of water in euro per cubic meter from 47 dams at Aegean Islands. It also presents some basic information about the corresponding dam, such as the definition of the water use from the corresponding dam, the height, and the seal type. In order to define the water cost, the following parameters are assumed:

The cost of the WTP is 20% of the investment cost (if the water is used for irrigation only). The life time period of the installation is 20 years. The annual quantity of water consumed is about 2/3 of the total capacity.

The categorization of dams according to their capacity as follows: Small Dams: 200,000 1,000,000 m3 (21 installations) Medium Dams: 1,000,000 2,000,000 m3 (15 installations) Large Dams: greater than 2,000,000 m3 (11 installations)

Table 4.2: Water cost from dams (Source: HMEP, Efthimiou & Theodoropoulos, 1997)
Island Location Investment Cost () Capacity (m3) Water Cost (/m3) Water Use Height (m) Seal Type

Small Dams - 1st Capacity Range (21 dams): 200,000 - 1,000,000 m3 Ios Chios Lesvos Kimolos Chios Syros Sifnos Patmos Mylopotamos Vavylon Sedountas Pyrgos Zyfia Aetos Kamares Livadi 1722700 1526045 2641233 2641233 1845900 3228173 3961849 3400000 215000 230000 300000 350000 370000 400000 410000 450000 0.72 0.60 0.79 0.68 0.45 0.73 0.87 0.68 urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban 23 20 20 22 18 32 35 26 grout cut-off and seal membrane grout cut-off grout cut-off and seal membrane grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off

44

Crete-Heraklion Samos Serifos Leros Crete-Heraklion Skyros Astypalea Psara Ikaria Kythnos Lesvos Limnos Mykonos

Kalami Karlovasi Steno Partheni Amiron Ferekampos Livadi Voukolies Pezes-Rahes Episkopi Polychnistos Kaspakas Ano Mera

3228173 3668379 3521643 2553200 8217168 3521643 2553200 3815114 4223000 5575935 5869406 7043287 3260000

670560 695000 700000 785000 859160 870000 875000 885000 1000000 1000000 1000000 1000000 1000000

0.43 0.48 0.45 0.29 0.86 0.36 0.22 0.39 0.38 0.50 0.53 0.63 0.29

urban & irrigation urban & irrigation urban & irrigation urban urban & irrigation urban & irrigation irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation

22 25 27 25 40 23 24 24 24 27 31 29 29

grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off and seal membrane grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off

Medium Dams - 2nd Capacity Range (15 dams): 1,000,000 - 2,000,000 m3 Chios Andros Crete-Lassithi Karpathos Kos Milos Crete-Heraklion Naxos Crete-Lassithi Lesvos Crete-Heraklion Kea Rodos Rodos Rodos Kontos Ateni Mython Schoinias Mia Agios Ioannis Ano Assites Faneromeni Agios Ioannis Stavros Ini Keramidi Steni Kritinia Lardos 3815114 3374908 3668379 6221570 1907557 4988995 11445341 8984700 4402054 5869406 7336757 5429200 8804109 8070433 5869406 1025000 1100000 1100000 1100000 1240000 1300000 1357070 1467000 1500000 1500000 1790000 1900000 2000000 2000000 2000000 0.33 0.28 0.30 0.42 0.14 0.35 0.76 0.55 0.26 0.35 0.37 0.26 0.40 0.36 0.26 urban & irrigation urban & irrigation urban & irrigation irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation 26 27 25 31 22 28 40 44 30 34 28 36 31 29 29 grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off

Large Dams - 3rd Capacity Range (11 dams): 2,000,000 - 27,300,000 m3 Lesvos Rodos Mykonos Chios Eressos Soroni Marathi Koris Gefiri 7043000 5869406 3440000 18825000 2450000 2800000 2900000 3000000 0.26 0.19 0.11 0.56 urban & irrigation urban & irrigation urban & irrigation urban & irrigation 26 30 30 30 grout cut-off grout cut-off grout cut-off grout cut-off

45

Naxos Rodos Chios Rodos Crete-Heraklion Crete-Heraklion Crete-Heraklion

Tsikalario Gadoura Kalamiotis Apolakia Plakiotissa Faneromeni Aposelemi

7160675 18419000 5487894 3251650 23800000 35200000 48970000

3000000 3250000 5000000 7600000 18600000 19670000 27300000

0.21 0.51 0.10 0.04 0.12 0.13 0.16

urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation irrigation urban

43 67 40 47 53 76 57

grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off grout cut-off

The following Figure was constructed by the author according to the data retrieved from Table 4.2, and shows the cost fluctuation according to the plant capacity from the overall dams in Aegean Islands. The average unit cost of the selected 47 installations is 0.41/m3, and the allocation indicates that for larger installations we have lower water cost, and viceversa.

Figure 4.7: Unit costs vs. dams capacity in Aegean Islands (Source: The author)

The total investment cost of a dam depends on multiple parameters (e.g. the specific location), however, mainly it depends on the corresponding type of dam and its purpose (USDI, 1987). Generally, the investment cost for the construction of a dam includes the
46

expense allocation that is presented to the feasibility study of the corresponding dam. The feasibility study comprises the first stage of the main study. Therefore, the expense allocation should adduce the following (Dimitriou, 2006):

1.) Cost of the specific project plan (remunerations, geologic-research project cost, and fittings cost) 2.) Excavations cost 3.) Earthworks cost 4.) Gasketing cost (mounting and stands) 5.) Spillway construction cost 6.) Land and compensation costs 7.) WTP and other operational costs 8.) Other unexpected costs (approximately 10% of the total cost)

Generally, total production cost consists of investment cost and operational cost. The parameters which constitute the investment cost of a dam, and therefore, affect the production cost, can be categorized as follows. 1st Category: Diversion, Stream audit and water remotion. Weed eradication and land reclamation. Excavation works. 2nd Category: Stiffening and safety protection of excavation works. Drilling, consolidation grounding, and drainage.

3rd Category: Embankments. 4th Category: Concrete. Special concrete requirements and mounting sections.

5th Category: Road construction.

47

6th Category: Steel constructions. Masonry.

7th Category: Steel pipes and excavation. 9th Category: Electrical and mechanical works

Table 4.3 and Table 4.4 summarize the distributed investment cost data from two representative dams. Data are taken from Hellenic Ministry for the Environment, Physical planning and public works. The first dam is located at Heraklion on Crete Island and more specific in the Aposselemis region. Likewise, the second dam is located on Rhodes Island and specifically in the Gadouras region. Note that the capacity of the first dam is 22,700,000 m3, while the second one has a capacity of 3,250,000 m3 (Kotsonis & Lazaridis, 2007). Therefore, in order to analytically parameterize the investment cost of a dam one should consult the following Tables.

48

Table 4.3: Investment cost parameterization of Aposselemis dam, Crete Heraklion. (Source: HMEP)
Investment cost Category 1st Category Diversion, Stream audit & Water remotion Weed eradication & land reclamation Excavation works 2nd Category Stiffening & Safety protection of excavation works Drilling, Consolidation grounding, and drainage 3rd Category Embankments 4th Category Concrete Special concrete requirements and mounting sections 5th Category Road construction 6th Category Steel constructions Masonry 7th Category Seal of the intake duct and diversion pipe 8th Category Steel pipes and excavation 9th Category Electrical and mechanical works Sum of investment costs Unexpected costs (9%), General Expenses & Administrative costs Value Added Tax (VAT) (18%) TOTAL INVESTMENT COST Cost () 4498900 350000 53500 4095400 2225538.9 1133970 1091568.9 13767849 13767849 6182043 3983108 2198935 1839176.5 1839176.5 464663 363023 101640 237875 237875 315500 315500 1231505.67 1231505.67 30763051.07 8804385.28 7470000 48,970,000 17.98% 2.51% 0.64% 0.95% 0.74% 0.21% 0.49% 12.62% 8.13% 4.49% 3.76% Percentage of investment cost 9.19% 0.71% 0.11% 8.36% 4.54% 2.32% 2.23% 28.11%

49

Table 4.4: Investment cost parameterization of Gadouras dam, Rhodes. (Source: HMEP)
Investment cost Category 1st Category Diversion, Stream audit & Water remotion Weed eradication & land reclamation Excavation works 2nd Category Stiffening & Safety protection of excavation works Drilling, Consolidation grounding, and drainage 3rd Category Embankments 4th Category Concrete Special concrete requirements and mounting sections 5th Category Road construction 6th Category Steel constructions Masonry 7th Category Seal of the intake duct and diversion pipe 8th Category Steel pipes and excavation 9th Category Electrical and mechanical works Sum of labor costs Unexpected costs (9%), General Expenses & Administrative costs Value Added Tax (VAT) (18%) TOTAL INVESTMENT COST 11973254.5 4326745.7 2119000 18,419,000.2 23.49% 474650 2.58% 265700 1.44% 114125 98575 15550 255000 0.62% 0,54% 0,08% 1.38% 2456645 1605010 851635 517970 13.34% 8,71% 4,62% 2.81% Cost () 1978340 127570 22530 1828240 554909,5 289350,5 265559 5355915 Percentage of investment cost 10.74% 0,69% 0,12% 9,93% 3.01% 1,57% 1,44% 29.08%

50

Therefore, summarizing the above data from two dams, one can collect the parameters of the investment cost into the following pie chart.

Figure 4.8: Distribution of the investment cost of dams (Source: The author)

4.2.3

GROUND

WATER

RESERVOIRS

CONSERVATION

STORAGE

RESERVOIRS

Table 4.5 collects the data taken from Hellenic Ministry for the Environment, Physical Planning and Public Works, and from Efthimiou & Theodoropoulos, 1997. The following Table shows the calculated cost of water in euro per cubic meter from 62 ground water reservoirs at Aegean Islands. It also presents some basic information about the corresponding conservation storage reservoir, such as the definition of the water use from the corresponding ground reservoir, and the seal type. The same parameters as in the case of dams and Table 4.2 are assumed, namely:

The cost of the WTP is 20% of the investment cost (if the water is used for irrigation only).
51

The life time period of the installation is 20 years. The annual quantity of water consumed is about 2/3 of the total capacity.

The categorization of ground reservoirs according to their capacity as follows: Small Dams: 25,000 250,000 m3 (26 installations) Medium Dams: 250,000 550,000 m3 (19 installations) Large Dams: greater than 550,000 m3 (17 installations)

Table 4.5: Water cost from ground water reservoirs (Source: HMEP, Efthimiou & Theodoropoulos, 1997)
Small Ground water Reservoirs - 1st Capacity Range (26 water reservoirs): 25,000 - 250,000 m3 Investment Cost () 146735 220103 880411 1027146 586941 1173881 2641233 719002 2054292 2641233 2054292 1702128 2934703 1614087 Capacity (m3) 25000 36000 54000 76000 83000 95000 96000 100900 101000 140000 148000 150000 155000 156000 Water Cost (/m3) 0.53 0.55 1.47 1.22 0.53 1.11 2.48 0.64 1.83 1.70 1.25 1.02 1.70 0.93 Water Use urban & irrigation urban & irrigation urban urban & irrigation irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation

Island Rodos Lipsoi Nissyros Ikaria Limnos Kastelorizo Thira CreteHeraklion Skopelos Thira Aigina Naxos Symi Kalymnos

Location Nanoi Panagia Nissyros Agios Kirykos Thanou Airport Airport A Martha-Karavatho Panormo Airport B Lakka Kinidaros Pedi Vathy

Seal type seal membrane plastic membrane seal membrane seal membrane from high density polyethylene (HPDH) seal membrane seal membrane seal membrane seal membrane from PVE seal membrane seal membrane seal membrane from low density polyethylene (LLDPE) seal membrane plastic membrane plastic membrane

52

Chios Samos Chios Skyros Paros Lesvos Kos Tilos Anafi Ios CreteHeraklion Amorgos

Viki Mytilinioi Agios Georgios Sykano Kavouropotamos Agrilia Messaria Agia Eirini Agia Eirini Epano Kampos Skinias Katapola

733676 440205 1408657 1760822 2641233 1760822 748349 1408657 2611886 3668379 1467351 1731475

158500 160000 177000 180000 185600 203000 215000 220000 235000 238000 240000 250000

0.35 0.25 0.72 0.88 1.28 0.65 0.31 0.58 1.00 1.39 0.46 0.62

irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation irrigation urban

seal membrane seal membrane seal membrane seal membrane seal membrane from high density polyethylene (HPDH) seal membrane seal membrane seal membrane seal membrane seal membrane seal membrane seal membrane from high density polyethylene (HPDH)

Medium Ground water Reservoirs - 2nd Capacity Range (19 water reservoirs): 250,000 - 540,000 m3 Cost () 2347762 2494497 3815114 1349963 2259721 2641233 2934703 1320616 2289068 Capacity (m3) 275000 300000 300000 300000 300000 300000 320000 320000 330000 Water Cost (/m3) 0.77 0.75 1.14 0.40 0.68 0.79 0.69 0.37 0.62 Water Use urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation urban & irrigation irrigation urban & irrigation irrigation

Island CreteLassithi CreteHeraklion Paros Rodos Samos Samothraki CreteChania Tinos CreteChania

Location Zoy Siteias Gergeri Syrigos Skolonitis Marathokampos Kseropotamos Elos Livada Agios Theodoros

Seal type seal membrane seal membrane seal membrane from high densitypolyethylene (HPDH) seal membrane seal membrane seal membrane seal membrane seal membrane seal membrane

53

Samothraki CreteChania Rodos Paros Kos Samothraki Alonnissos Samos CreteRethymno Thassos

Platydentro Kontoura A Epta Piges MarpissaProdromos Platy Skafi Kastania Ydroussa Vizari Theologos

2641233 3888481 2787968 4402054 2201027 2054292 2934703 4548789 2758621 2494497

350000 365000 365000 370000 400000 400000 405000 440000 505000 540000

0.68 0.80 0.69 1.07 0.50 0.39 0.65 0.78 0.41 0.42

urban & irrigation irrigation urban & irrigation urban & irrigation urban & irrigation irrigation urban & irrigation irrigation irrigation urban & irrigation

seal membrane seal membrane seal membrane seal membrane seal membrane from polyethylene (PE) seal membrane seal membrane seal membrane from polyethylene (PE) seal membrane plastic membrane from low density polyethylene (VLDPE)

Large Ground water Reservoirs - 3rd Capacity Range (17 water reservoirs): >550,000 m3 Cost () 3228173 1540719 2347762 4842260 2054292 5722671 3521643 4783566 5575935 2934703 3374908 Capacity (m3) 553450 560000 580000 600000 600000 630000 630000 650000 656000 720000 738000 Water Cost (/m3) 0.52 0.21 0.30 0.61 0.31 0.68 0.42 0.55 0.76 0.37 0.34 Water Use urban & irrigation irrigation irrigation irrigation urban & irrigation irrigation irrigation irrigation urban & irrigation urban & irrigation irrigation

Island Thassos Lesvos Lesvos CreteRethymno Naxos Thassos Thassos CreteRethymno Rodos CreteRethymno CreteLassithi

Location Kallirachi Kerami-Kalloni Mythimna Arkadi Egares Prinos Limenaria Nida Asklipeio Gonomio Chavga

Seal type seal membrane seal membrane seal membrane seal membrane seal membrane seal membrane plastic membrane from low density polyethylene (VLDPE) seal membrane seal membrane seal membrane seal membrane

54

Ydra Lesvos CreteChania CreteChania CreteChania CreteLassithi

Metochi Vassilika Kontoura B Chryssoskaliotissa Omalos Agios Georgios

7307410 4402054 3888481 2641233 8804109 14004166

792600 850000 878000 1050000 1520000 2150000

0.83 0.47 0.33 0.19 0.52 0.49

urban urban & irrigation irrigation irrigation urban & irrigation irrigation

seal membrane seal membrane seal membrane seal membrane seal membrane from high density polyethylene (HPDH) seal membrane

The following Figure was constructed by the author according to the data retrieved from Table 4.5, and illustrates the unit cost fluctuation according to the plant capacity from the overall selected ground water reservoirs in Aegean Islands. Therefore, Figure 4.9 summarizes the allocation of water cost per cubic meter from the above Table and for 62 ground water reservoirs. Note that the average unit cost of ground water reservoirs is 0.74/m3, and it is significantly higher than that of dams. Nevertheless, the allocation of unit cost indicates that for larger installations we have lower water cost, and vice-versa.

55

Figure 4.9: Unit costs vs. ground water reservoirs capacity in Aegean Islands (Source: The author)

As in the case of dams, we should select a representative ground water reservoir, in order to define and quantify the parameters affecting the investment cost of ground reservoirs. Data are taken from Hellenic Ministry for the Environment, Physical planning and public works. The selected installation is located on Crete Island in city of Lassithi, and more specific in the region of Agios Georgios. The capacity of the selected ground reservoir is 14,004,166m3. Therefore, in order to analytically parameterize the investment cost of a ground water reservoir one should consult the following Table. I should also note that the categorization of the parameters differs from the categories of the investment cost of dams (Tables 4.3 and 4.4), as both types of installations have similar construction materials and follow similar structural plan; however, there are two quite different plants. Therefore, Table 4.6 analytically parameterizes the investment cost of the selected installation. The categorization of the parameters constitute the investment cost of a ground water reservoir is shown below.

56

1st Category: Earthworks Beds and Embankments safety works Road construction - surfacing Draining works Groundwater pumping Water transfer piping Other preconstruction constructions

2nd Category: Sub-base reinforcement Concrete Special concrete requirements and mounting reinforcement Other related works

3rd Category: Steel constructions Piping - Fencing & special pieces

4th Category: Sealing 5th Category: Electrical and mechanical works

57

Table 4.6: Investment cost parameterization of Agios Georgios ground water reservoir, Crete-Lassithi. (Source: HMEP)
Investment cost Category 1st Category Earthworks Beds & Embankments safety works Road construction - surfacing Draining works Groundwater pumping Water transfer piping Other preconstruction constructions 2nd Category Sub-base reinforcement Concrete Special concrete requirements and mounting reinforcement Other related works 3rd Category Steel constructions Piping - Fencing & special pieces 4th Category Sealings 5th Category Electrical and mechanical works 6th Category Studies and further processing 825000 5.89% 24058 0.17% Cost () 5228580.7 2808543 117632 1123494.1 488421.6 18000 409990 262500 399181.5 76072.5 246831 61278 15000 112707.64 76650 36057.64 1650536 Percentage of investment cost 37.34% 20.06% 0.84% 8.02% 3.49% 0.13% 2.93% 1.87% 2.85% 0.54% 1.76% 0.44% 0.11% 0.80% 0.55% 0.26% 11.79%

Sum of labor costs Unexpected costs (9%), General Expenses & Administrative costs Value Added Tax (VAT) (18%) TOTAL

8240063.84 3528143.28 2235959.35 14,004,166.47 25.19%

58

The investment cost follows an approximate allocation as shown above in the case of dams, and, also the cost varies according to the specific individual place. The main variable cost included consists of the following: 1.) the cost of shell and abutments that based on the volume and price of slightly reinforced concrete, and 2.) the cost of shield that depends on the membrane type. However, I can present the parameters of the investment cost summarizing the above data from Agios Georgios ground water reservoir into a pie chart (see Figure 4.10). The operational cost is negligible if the ground reservoir is designed for irrigation. However, if the corresponding project is planned for urban water supply, the operational cost based on the WTP cost and energy requirements. As in the case of dams, these parameters depend on the volumetric capacity of the treatment plant, and, therefore, on the overall size of the ground reservoir (see Table 4.6).

Figure 4.10: Distribution of the investment cost of Agios Georgios ground water reservoir (Source: The author)

59

4.2.4 OPERATIONAL COST OF DAMS AND GROUND WATER RESERVOIRS

In the case of dams and ground water reservoirs (conservation storage reservoirs) and at installations where the use of water is also extended to potable, the cost is affected with the cost of WTPs operation. After an investigation of the available data from the Hellenic Ministry for the Environment, Physical planning and public works from the above dams of Aposselemis and Gadouras, and the ground reservoir of Agios Georgios that use WTP, I conclude to the following results. Firstly, the parameters of the operational cost of a dam or ground reservoir consist of: Staff cost Energy cost Chemical cost Equipment cost Maintenance cost

Energy and chemical costs are completely variable, as they depend on the produced water capacity. Therefore, I cannot provide a typical percentage for the contribution of energy and chemicals to the total production cost, as they are variables that depend on the specific installations conditions. However, there are general ranges of the cost of WTP and energy according the volumetric capacity (see Table 4.7). Maintenance cost also includes

variables. More specifically, maintenance includes the fix cost of the construction of civil works (1% of the total production cost), and the variable cost of the electrical and mechanical works (approximately 2% of the total production cost). Staff and equipment cost for dams and ground reservoirs are fixed costs. Secondly, the operational cost for both dams and ground water reservoirs varies from 3% to 6% of the total production cost. Analysing the operational cost, official studies show that fixed costs constitute 40-45% and variable costs 55-60% to the operational cost. The overall operational cost distribution is shown in Figure 4.11.

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Figure 4.11: Distribution of the operational cost of dams and ground water reservoir (Source: The author)

At this point, I should note that the cost of electrical energy on most Islands is significantly higher compared with the mainland. In the case of Aegean Islands, a representative cost of a water treatment plant and energy requirement variation based on the volumetric capacity of the installation is given by Gikas & Tchobanoglous (2009). As one can see in the following table, the addition to the investment cost due to WTP, and the energy cost decreases in terms of the volumetric capacity of the WTP. Therefore, it is one additional case where the size of the corresponding plant seems to be is a significant parameter. In Table 4.7, the cost of WTP is based on its volumetric capacity. Consequently, the volumetric capacity is a function of the plant size and Islands needs.

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Table 4.7: Water treatment plant cost and energy requirements per cubic meter of a dam based upon the volumetric capacity of the installation for Aegean Islands (Source: Gikas & Tchobanoglous, 2009). Volumetric capacity (m3/d) 100-1000 1000-2500 2500-5000 Cost of water treatment plant (/m3) 0.25-0.35 0.15-0.20 0.15-0.18 Energy Requirements (kWh/m3) 0.08-0.15 0.08-0.12 0.05-0.10

4.2.5 RESERVE OSMOSIS DESALINATION PLANTS

The most common desalination technology used in the Aegean Islands is reserve osmosis. Investment cost includes drilling, installation, buildings, main equipment, and commissioning; while the operational cost of a desalination system concerns annual operating expenses such as: energy requirements, human resources, chemicals, membranes, and other costs (Karagiannis & Soldatos, 2007). Investment cost and energy requirements constitute approximately 80% of the total production cost. On the contrary, only 20% of the production cost concerns operation and maintenance (excluding energy). The following figure illustrates this cost distribution of the total production cost for Mediterranean Islands.

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Figure 4.12: Total production cost distribution of desalination unit (Source: Gikas & Tchobanoglous, 2009)

The production cost of desalination units can vary according to various parameters such as the size and type of the desalination plant, the specific location and its conditions, energy costs, the source and quality of incoming feed water, and finally the desirable plant lifetime (Zhou & Tol, 2005). In comparison with other water supply sources, where investment cost constitutes the greater percentage of the total production cost, the investment cost of a reserve osmosis desalination plant constitutes only 53% of the production cost (see Figure 4.13). It is also notable that the operational and total production costs rise linearly with increasing concentration (Akgul et al., 2008).

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Figure 4.13: Total production cost of reserve osmosis desalination unit (Source: Aktul et al., 2008)

Firstly, the investment costs of desalination plants include all the costs related with the installation and proper operation of the system and more specifically the following: drilling, installation, buildings, main equipment, and commissioning (Karagiannis & Soldatos, 2007). Figure 4.14 gives a quantitative view of the parameters affecting the investment cost, for a reserve osmosis desalination plant.

On the contrary, the operational cost of desalination system concerns annual operating expenses such as: energy requirements, human resources, chemicals, membranes, and other costs (Karagiannis & Soldatos, 2007). As one can see in Figure 4.15, the cost of energy requirements constitutes the greatest part of the operational cost, approximately 70% (Akgul et al., 2008), while only 30% of the operational cost represents human resources, chemicals, membranes, etc.

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Figure 4.14: Investment cost of reserve osmosis desalination unit (Source: Karagiannis & Soldatos, 2007)

Figure 4.15: Operational cost of reserve osmosis desalination unit (Source: Aktul et al., 2008)

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A representative investment cost and energy requirement variation based on the volumetric capacity of reserve osmosis desalination plants for Aegean Islands is given by Gikas & Tchobanoglous (2009) (see Table 4.8). Both parameters of the production cost, namely, investment and operational cost from a reserve osmosis desalination unit decrease in terms of the volumetric capacity of the installation, and, therefore the size of the overall plant.

Table 4.8: Water cost and energy requirements from reserve osmosis desalination plant based upon the volumetric capacity of the installation, for Aegean Islands (Source: Gikas & Tchobanoglous, 2009). Volumetric capacity (m3/d) 100-1000 1000-2500 2500-5000 Investment Cost (/m3) 1.50-3.50 1.00-2.00 0.75-1.25 Energy Requirements (kWh/m3) 5.00-10.0 4.00-5.00 3.50-4.00

4.2.6 WATER TRANSPORTATION

Gikas and Tchobanoglous (2009) classify the arid Islands into two primary categories based on the location from where the water is imported. The first group includes Cyclades complex where the water is transported from the port of Lavrion in Attica. Similarly, the second group includes Dodecanese complex where the water is transported from the Island of Rhodos. The following table shows the transported water for the above groups of arid Islands for the year 2004.

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Table 4.9: Water transported to arid Islands for the year 2004 (Source: Karagiannis & Soldatos, 2007) Cyclades Amorgos Koufonisia Kimolos Heraklia Schinousa Folegandros Sikinos Thirasia Milos Quantity of transported water (m) 9050 39600 27922 14408 31846 36270 10748 9168 159800 Dodecanes Agathoni Lipsi Megisti Nisiros Patmos Simi Halki Palionisos (North Kalimnos) Pserimos Leros Total 338812 Total Quantity of transported water (m) 12120 41672 58934 22766 249325 277140 53180 900 1300 42150 759487

The shorter distances between the Islands of the second group and the transported port (Rhodos) gives a 30% lower cost per cubic meter in comparison with the cost of the first group. Namely, the transported cost for the first group is 7.60 /m (2004 cost - VAT incuded), while the corresponding cost for the second group is 5.35 /m (2004 cost - VAT incuded) (Karagiannis & Soldatos, 2007).

Despite all disadvantages that we have already mentioned, the solution of water transport has been adopted for many arid Aegean Islands for the present (Karagiannis & Soldatos, 2007). The term of investment cost, in this case, concerns the cost of water, its transport, and possible infrastructure requirements, while, correspondingly, the operational cost concerns the operation of this infrastructure. The basic principles of the infrastructure required are a desalination plant or water treatment plant near the source, the pumping into tanker, docking facilities, special water tanker, etc. (Gikas & Tchobanoglous, 2009). It is obvious, that, energy is consumed due to petrol requirements of tanker boats. Therefore, the total production cost distribution between investment, energy and operation costs, is shown in the Figure below.
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Figure 4.16: Total cost distribution of water importation from mainland (Source: Gikas & Tchobanoglous, 2009)

Nevertheless, the cost of water transportation can significantly vary, because it is a function of the capacity of the tanker boat, and the cost of fresh water. Therefore, summarizing the above values and taking into account that the water transported depends on distances between Islands, capacity of tanker boats, and the cost of fresh water, Gikas & Tchobanoglous (2009) gives representatives costs for the water transportation according the volumetric capacity of the transferred water. Also, considering the oil prices, the energy requirements are also known. The cost of kWh in Aegean Islands is significantly high, reaching the value of 0.22/kWh. The results are shown in the following table and we can note that the transportation cost is lower for higher amounts of transferred water and viceversa. The same result is detected also for the values of energy required, because for small quantities of water there are needed more trips or a bigger tanker boat.

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Table 4.10: Water transportation cost and energy required, according to the volumetric capacity of transferred water, for Aegean Islands (Source: Gikas & Tchobanoglous, 2009). Volumetric capacity (m3/d) 100-1000 1000-2500 2500-5000 Cost for water transportation (/m3) 5-7 5-6 4-6 Energy Requirements (kWh/m3) 12-16 6-10 5-8

The problem of water shortage in Aegean Islands deteriorates during the summer months, when the demand is increased by a factor of about four or five times the winter level due to national and international tourism data. Therefore, the maldistribution of the demand develops an unbalanced seasonality of water seasonality over the year, as one can see in the above data and figure in the case of the Cyclades complex for the year 2004.

Table 4.11: Seasonality of water transport to Cyclades for the year 2004 (Source: Karagiannis & Soldatos, 2007). 2004 1st quarter 2nd quarter 3rd quarter 4th quarter Total Transported water (m3) 33,000 88,000 148,000 68,000 337,000

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Figure 4.17: Cyclades water transport seasonality in 2004 (Source: Karagiannis & Soldatos, 2007)

4.3 SUMMARY

In this chapter, water cost results from 47 dams and 62 ground water reservoirs were presented in order to examine the relationship between unit cost of water and capacity of the installation. The investment and operational cost parameters for dams and ground reservoirs were also presented for three specific installations (two dams and one ground reservoirs) in terms of water cost. The parameters were quantified in order to acquire the ability to define their contribution to the total production cost of the corresponding plant. Representative cost values for reserve osmosis desalination plants, water importation, and operational cost of dams and ground reservoirs were also presented.

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CHAPTER 5

DISCUSSION

5.1 INTRODUCTION

The fifth chapter is the discussion of the results and includes two categories, namely internal and external. Internal results include an initial theoretical comparison of the alternative water supply methods, and a presentation of the main selection criteria of the water supply sources. Also, a cross-comparison of the results between the water costs from all available water sources is accomplished. As regards external results, a theoretical procedure from literature will be presented in order to determine the cost of the different elements of a small dam via mathematical functions. Also, a water cost comparison, for desalination plants and water importation, with other international data will be carried out. Finally, other extensions and research sections deriving from the present research and possibilities for further study will be discussed.

5.2 INTERNAL DISCUSSION OF RESULTS

In Greece, a non-uniform distribution of water resources has been observed, namely, the majority of water resources are located in West Greece (Sterea Ellada and Ipiros), while in other regions there are small water reserves (i.e. Cyclades Islands and Dodecanese). This fact is engendered by several climatologic and geographic factors, such as higher rainfall in West Greece. Furthermore, there is temporal rainfall non-uniform distribution, namely the majority of rain falls in winter months while in summer the rainfall is negligible or nonexistent. Taking into account the above mentioned parameters, the necessity of surface water saving plants becomes obvious, mainly in Islands where the problem is acute (Efthimiou & Theodoropoulos, 1997). There are multiple hydrologic studies and measurements that the relevant authorities should assimilate in order to evaluate the possible alternative water supply methods. However, there are some generally acceptable advantages and limitations for each method as listed in the following table:

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Table 5.1: Evaluation of alternative water supply methods (Source: The author). Method Desalination plants 1. Advantages Ability to incorporate technology innovations Disadvantages 1. Energy demands (approximately one third of the operational cost is the power consumption) 2. Maintenance cost

2. 3. 4. 5. 6. Dams 1. 2. 3. 4. Ground water reservoirs 1. 2.

Quality and quantity of the supplied water Siting flexibility (sizing of facilities) Investment cost Comparable or lower cost of water than the other methods Utilization of RES for low energy demands Maintenance cost (without water treatment plant) High domestic water supply Industrial and irrigational water supply Aeration of water Maintenance cost Stable and secure application

1. Siting inflexibility (sizing of facilities) 2. Investment cost 3. Effect of large scale dams on the environment

1. Effects on the environment 2. Site selection with the appropriate hydrogeological conditions 3. Interception of downstream water flow 4. Salinization in reservoir area 1. Cost of water 2. Transportation cost 3. Quality of water 4. Weather conditions dependence 5. Local infrastructure debasement
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3.

Null energy demands

Water Transportation

1. 2.

Null land usage Direct solution

Dams and water reservoirs can significantly contribute both to surface water saving, and to the increase of the water potential of the country, while the necessity of controlling the water resources in order to cover the potable needs and the agricultural activities are increasing (Savvaidis, et al. 1999). The main selection criteria of water supply methods concern the water uses that the supplied water is going to cover. The following table presents the uses of water for various water supplies in the Aegean Islands while the next step of the selection constitutes the investment and operational cost analysis.

Table 5.2: Selection criteria of water supply methods (Source: The author). Water Use Water Supply Desalination Dam Ground Reservoir Water treatment plant joint with dams and ground reservoirs Water Transportation Urban Use Potable Other Secondary Uses Irrigation Use Industrial Use

Before comparing the salient results, the main selection criteria of water supply methods that concern the water uses that the supplied water is going to cover should be taken into account. The factors affecting the cost of water are directly associated with the supply source, and the corresponding use of water presented in Table 5.2.

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Table 5.3: The factors affecting the cost of water from dams in terms of investment and operational cost (Source: The author) Factors Affecting the cost of water (/m3) Dams
Investment Cost Plant Capacity Plant Location (land price, length, subsoil, hydro-geological conditions etc.) Type of structure (type of dam, embankment, construction materials etc.) Plant Lifetime Operational Cost Energy Cost

Labour

Quantity of stored water

Quality of stored water

Table 5.4: The factors affecting the cost of water from ground water reservoirs in terms of investment and operational cost (Source: The author) Factors Affecting the cost of water (/m3) Ground water reservoirs
Investment Cost Plant Capacity Plant Location (land price, length, subsoil, hydro-geological conditions etc.) Type of structure (type of ground reservoir, seal type, embankment, construction materials etc.) Plant Lifetime Operational Cost Energy Cost

Labour

Quantity of stored water

Quality of stored water

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Table 5.5: The factors affecting the cost of water from RO Desalination plants with conventional and renewable energy sources in terms of investment and operational cost (Source: Eltawil, M., et al, 2009) Factors Affecting the cost of water (/m3) RO Desalination (with conventional and renewable energy sources)
Investment Cost Operational Cost Energy Cost Plant Capacity (Size of treatment units, water storage tank, water distribution system) Quality of feed water (high or low TDS concentration) Labour

Site Characteristics (availability of land, land condition, pumping & piping cost) Regulatory and/or environmental requirements (local permits) Surface water intake structure

Maintenance and spares

Chemicals

Plant Lifetime

Membranes

Other materials related to pre-treatment

Fixed costs (Insurance & Amortization)

The cost analysis presented in the previous chapter is directly associated with the decision support on infrastructure for each supply source. Therefore, the developer that is going to implement a particular project should firstly be acquainted with the factors affecting the cost of water for the specific project, and secondly, with the specific parameters and their contribution to the total production cost. Tables (Table 5.3, Table 5.4, and Table 5.5) present these factors that affect the cost of water (/m3) in terms of investment and operational cost for dams, ground water reservoirs, and desalination plants correspondingly.
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At this point, one should note that the implications of the uncertainties in data, which will be presented further on in this chapter, are strongly associated with the factors shown in the above Tables.

As regards the definite water cost values of water supply sources, the cost comparison between various water supply sources is a basic procedure that the developer should accomplish in order to select the most advantageous one. Any selection constitutes an individual and special option for the corresponding specific case, and, the Aegean Islands represent a significantly sufficient place for anyone who is going to base his research on many variables and theoretically proven data. Nevertheless, a cost comparison between dams and desalination plants, or ground water reservoirs and desalination plants will be erroneous. The classification of dams and water ground reservoirs was made in terms of their total capacity, namely the total storage potential that is expressed as m3. On the contrary, desalination plants are classified according to their volumetric capacity. Volumetric capacity is the maximum capacity of water that the desalination unit is going to supply, and it is generally expressed as m3/d. Finally, water importation is also expressed in terms of volumetric capacity of the transferred water. However, it is an individual alternative solution that should be examined insularly, because it is simply a contact between local authorities and tanker boat owners. Therefore, the correct and scientifically approved comparison, in terms of water cost, will be between dams and ground water reservoirs. Also, a comparison between the water cost from desalination plants and water importation is feasible.

Firstly, in order to compare the cost of water from dams with that of ground reservoirs, the following diagram that summarizes the extracted data from chapter four is constructed. The dark red trend line represents the water cost from ground water reservoirs, while the blue trend line represents the water cost from dams. The results shown that dams present 55% lower cost in comparison with ground water reservoirs. Dams also present an average water cost of 0.41/m3, with a standard deviation value of 0.21. On the contrary, water ground reservoirs have an average cost of 0.74/m3 and standard deviation of 0.44. Therefore, the cost of water varies as follows:

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Dams: 0.04 0.86 /m3 Ground water reservoirs: 0.19 2.48 /m3

Figure 5.1: Cross-comparison of water cost from dams versus ground water reservoirs (Source: The author)

The above values concern the production cost found. The nature of those installations, and the multiple variables included, entail significant problems to the cost forecast. The assumed lifetime of dams and ground reservoirs is twenty years, while the cost of the WTP is assumed to be 20% of the investment cost. Therefore, these cost ranges can represent the relationship between production cost and size of the installation in the specific case of Aegean Islands. Consequently, if one considers the information from the above chart only, defining a single cost valuation for a future installation, several unexpected implications will arise. Also, the annual quantity of consumed water can significantly vary according the specific Island and climatologic conditions of the year under consideration. The assumption that has been made presupposes that the annual quantity of water consumed is about 2/3 of the total capacity of the project. This assumption is obviously whether weather and demand

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are dependent. On the contrary, if one tries to compare or record, and not to forecast costs, his results will not include uncertainties.

Secondly, as regards the other two water supply sources, namely, RO desalination plants and water importation via tankers, one should note that the latter is normally going to cover occasional needs for summer season periods. However, the large amounts of water that are still transferred via tanker boats to Aegean Islands make this comparison attainable. Taking into account Table 4.8 and Table 4.10, we should extract the following results in order to compare water production and investment cost from desalination and water importation according to the corresponding volumetric capacity.

Table 5.6: Investment cost comparison. Desalination plants versus water transportation. (Source: Gikas & Tchobanoglous, 2009) Investment Cost (/m3) Volumetric capacity (m3/d) Desalination 100 - 1000 1000 - 2500 2500 - 5000 1.50 3.50 1.00 2.00 0.75 1.25 Water transportation 5.00 7.00 5.00 6.00 4.00 6.00

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Table 5.7: Production cost comparison. Desalination plants versus water transportation. (Source: The author) Production Cost (/m3) Volumetric capacity (m3/d) Desalination 100 - 1000 1000 - 2500 2500 - 5000 2.50 5.50 1.80 3.00 1.45 2.10 Water transportation 7.40 10.2 6.20 8.00 5.00 7.60

This comparison can also be characterised as fallible if the reader does not take into account the several variables included. The cost of water transportation can significantly vary, because as Gikas & Tchobanoglous (2009) propose, it is a function of the capacity of the tanker boat, the cost of fresh water, weather conditions, and other factors that have already been defined. The salinity of feed water is a crucial parameter in calculating the total production cost, and, therefore, these cost ranges are only accurate for installations in the Aegean Sea. Specific site conditions can also strongly affect the above data, developing higher or even lower production costs for a future RO desalination plant. Nevertheless, facts prove that the cost of water transportation is a completely independent supply source, as it is a simple contact between local authorities and tanker boat owners. Therefore, I disagree with Gikas & Tchobanoglous (2009) statement which parameterizes water transportation. One should not base his judgment on scientific findings or/and analyze an alternative water supply solution founded on a single contact, that is between the tanker boat owner and local authorities.

5.3 EXTERNAL DISCUSSION OF RESULTS

The production cost of dams is a complex issue that scientists try to determine, in order to define the cost of a new installation. This is also important when the researcher is going to forecast the cost of a possible refurbishment in the context of maintenance or construction failure. Initially, one could compare the cost ranges found for dams and ground water
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reservoirs with those from literature; however, there is no similar work in the international literature. Ogayar et al. (2009) give a theoretical procedure in order to determine the cost of the different elements of a small dam via mathematical functions. Namely, the cost is determined from the volume of different elements which constitute the dam (dam shell, shield, abutments, and external walls), without developing a complete project. Firstly, the cost of dam shell and abutments (COds) is given by the equation: COds = (HCP T1 + HET T2) C5 Where, HCP = Concrete in dam shell (m3) (T1%), HET = Concrete in abutments (m3) (T2%), and C5 = Price of a m3 slightly reinforced concrete. Next, the cost of the shield (COsh) is given by: COsh = (C4 + 1.5 M C2) HPT T3 Where, HPT = Concrete in shield (m3) (T3%), M = Parameter which indicates the type of material to be excavated (1 for granite, 0.75 for softer materials, and 1.25 for harder materials) C4 = Price of a m3 slightly reinforced concrete. Finally, the cost of the external walls of a small dam (COew) is: COew = HMC T4 C3 Where, HCP = Concrete in external walls (m3) (T4%), C3 = Price of a m3 slightly reinforced concrete. Therefore, summarizing all of the above, the total cost of the dam (COdam) by Ogayar et al. (2009) will be obtained adding up Equations (1), (2), and (3): COdam = COds + COsh + COew (4) (3) (2) (1)

Other factors that favor the use of rockfill dams include the ability to place rockfill throughout the winter and the possibility of grounding the foundation while simultaneously placing the embankment (USDI, 1987). In addition, some ambiguous factors for Aegean Islands are uplift pressures and erosion caused by seepage through rockfill material; however, they do not constitute significant design problems. Alternatively, other factors/conditions that affect the cost of both rockfill dams and ground reservoirs and are not straightforwardly associated with the elements which constitute the installation, but
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with the conditions of the specific place, can provide for a more correct financial analysis. Therefore, the additional data that should be taken into account by literature are the following; when any of the following conditions exist they can significantly affect the cost of dams and ground water reservoirs (USDI, 1987): Large quantities of rock are readily available or will be excavated in connection with the project (such as from a spillway or tunnel in the case of rockfill dams). Earthfill materials are difficult to obtain or require extensive processing before use. Short construction season prevail. Excessively wet climatic conditions limit the placement of large quantities of earthfill material. The installation is to be raised at a later date.

As regards desalination plants and water importation, Zhou & Tol (2005), present a study evaluating the costs of desalination and water transport. In the case of desalination there is a cost presentation in terms of multiple parameters for many regions of the world which face formidable freshwater scarcity.

Figure 5.2: Unit costs versus total installed capacity by the reserve osmosis process. (Source: Zhou & Tol, 2005)

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More specifically, the unit costs of all desalinating plants using RO processes over the total cumulative installed capacity are presented. The results identify the cost ranges of Aegean Islands, namely, from 1.45/m3 to 5.50/m3. The allocation confirms the fact that the capacity exponentially affects the cost of water due to economies of scale. Furthermore, Karagiannis & Soldatos (2008) give the following ranges for the cost of water desalination (per m3) for membrane (RO) methods according to different plant capacities. Table 5.8 presents information about similar distribution and cost values. However, these literature sources concern international data which does not cover Greece or the Aegean Islands.

Table 5.8: Cost of seawater desalination according to the size of plant. (Source: Karagiannis & Soldatos, 2008) Size of plant (m3/d) <100 250-1,000 1,000-4,800 6,000-15,000 100,000-320,000 Cost (/m3) 1,20-15,00 1,00-3,14 0,56-1,38 0,38-1,30 0,36-0,53

Kally et al. (1993) discuss water transport costs which contain a few useful estimates, particularly with regard to the costs of transferring water from the Nile to Gaza, and from Turkey to Cyprus (Zhou & Tol, 2005). In contrast with the cost for transporting water to the Aegean Islands, the results of Zhou & Tol (2005), based on Kallys et al. (1993) book, show that if one transports water horizontally it is relatively cheap whilst the main cost is lifting it up. More specifically, they found that desalinated water could be delivered to Bangkok and Beijing for 1.1$/m3, to Phoenix for 1.3$/m3, and to Zaragoza for 1.4 $/m3. These values seem to be competitive; however, Zhou & Tol (2005) do not take into account the factor of water capacity. Results are presented only in terms of distance, elevation, and they do include either energy requirements (40-45%, as shown in Figure 4.16) or capacity of tanker boats. Therefore, the specific case of the Aegean Islands is not comparable with other regions of the world, researched so far. Climatic conditions, lack of equipment and infrastructure and other specific factors exist in the Aegean Islands rendering water importation an expensive alternative solution.
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The results of the present research are also relevant for various utilities of other systems or real-life cases. As regards dams and ground water reservoirs, the results presented can give a view about the production cost of the installation. Namely, the relationship between the size of the project and its cost will provide information, and help in determining the size of a future construction. The water cost ranges that were presented in the case of desalination plants and water importation can also give the appropriate information, avoiding significant extra expenses for water transferred to the Aegean Islands. The total production cost parameterization of each water supply source can be extremely useful for future determination of the refurbishment cost of an extant installation. Researchers will estimate the magnitude of the work in terms of cost or water without the need of developing a complete project. Another meaningful parameter extracted from the results is energy consumption. The energy included mainly in the operational cost of supply sources is an independent research area that can be analyzed in terms of a life cycle analysis in order to determine the most energy independent solution for an Aegean Island, and not only the most economical one.

5.4 SUMMARY

In Chapter 5, a comparison of the results presented in Chapter 4 was carried out. Initially, a decision support is developed on infrastructure for dams, ground water reservoirs and RO desalination plants, and an ensuing discussion as to which supply sources will be compared. For each comparison, the author explains the way in which the reader should apply and interpret the corresponding data. The large cost deviation of dams and ground water reservoirs confirms that they are dependent on many parameters (that have already been defined), and mainly the conditions of the specific place. External discussion presents an alternative theoretical way for the calculation of the investment or refurbishment cost of dams. Also, international data from other literature sources are compared with the results found for Aegean Islands. Finally, it is concluded that the definition of the energy that each supply source consumes in the Aegean Islands will be a significant area for future research.

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CHAPTER 6

CONCLUSIONS

6.1 INTRODUCTION

In this chapter, the author presents the conclusion of his research work by addressing the research questions. The knowledge gained from the analysis and comparisons of Chapter 5, is applied to present the final conclusions. The sections of further research will also be listed, in combination with the possible influence of the present work on the public.

6.2 CONCLUSIONS ABOUT THE RESEARCH PROBLEM

In order to assess the current situation in the Aegean Islands, the main factors that were considered were the increase of per capita water consumption, the development of the tourist industry, the climatologic conditions combined with the limited water resources. Therefore, the need for further exploitation remains a complex issue that researchers ought to develop.

With a suitable design plan, the natural resources of an island can be exploited via the construction of large and small installations (for example, a dam or a ground water reservoir) that will serve in the future, which is much more beneficial than other methods that were analyzed in this particular research project. Specifically, after the analyses that were carried out on the existent installations on the Aegean Islands, it was noted that dams present an average water cost of 0.41 /m3 in comparison with 0.74 /m3 for ground water reservoirs. In situations in which the circumstances do not allow the abovementioned beneficial installations, desalination is the last resort, which was shown to be more advantageous, and in this way avoiding the most expensive option, namely that of water transportation via tanker boats. With an average water cost that reaches 3.5 /m3, desalination is preferable to water transportation which presents many disadvantages and a cost that exceeds 9.0 /m3. The design and construction time of desalination plants are relatively low in contrast to the corresponding times for dams and ground water reservoirs. Indicatively, the estimated design and construction period does not exceed 10 months (USDI, 2003) for a typical desalination plant of 1000 m3/d.
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In addition, in Chapter 5 there was the decision support procedure on infrastructure, presenting the advantages and disadvantages for each water supply method. After this analysis on investment and operational cost, the developer would be in a position to appreciate the factors affecting the cost of water in the Aegean Islands. As far as a general conclusion is concerned, it can be underlined that dams and groundwater reservoirs far exceed the investment costs of desalination plants. Conversely, dams and ground water reservoirs have a low operational cost, which is obviously the weakest factor with regard to desalination plants, contributing to about 47% of the overall production costs. The embankments for the dams (30%), the earthworks for the ground water reservoirs (20%) and the cost of WTP for both (approximately 20%) are the main parameters that affect the investment cost of each respective installation.

The above results, as well as other results from other research projects, such as those of Manolakos et al. (2008) and Tzen et al. (2005) have shown that the water cost could be reduced by up to 30%-50% implementing alternative methods such as desalination. Nevertheless, the quantities of the water that are transferred to the Aegean islands are increasing each and every day, as is public debt. These facts are well known in the scientific community; however, the general publics knowledge of the above is negligible, if not nonexistent. The result of this is that new public works concerning dams, ground reservoirs and desalination plants are embraced negatively by the public. The public have huge energy needs and the required installations have obvious environmental impacts, but public generally ignore the cost to the state and the potential for greater improvement and self-sufficiency of any island. Within the present work, therefore, new avenues of research are created concerning the significant environmental impact and the energy consumption of each respective water supply source, providing the impetus for future research in the area.

Therefore, taking into account all of the above, the water cost of large installations is lower due to the economies of scale, and, furthermore, considering every case as isolated and independent, beneficial solutions can be utilized in order to confront the specific problematic situation of water shortage in any specific Aegean Island.

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6.3 SUMMARY

The conclusions of the present research, which were presented in this chapter, concern the main factors affecting the cost of water as a function of the supply method and source type, for remote areas in the Aegean Islands. Conclusions follow directly from results, relate fully to research problems and address the hypothesis. The final Chapter also indicates exciting new avenues of research that the present work can develop.

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