Economic Evaluation of Aquifer Storage & Recovery Systems by Cortney C. Brand, PG, PMP, MBA

When evaluating the feasibility of conducting aquifer storage and recovery (ASR), there is a tendency to focus on the technical aspects such as water compatibility, recharge rates, and facility siting. However, it’s equally important to evaluate the economics of conducting ASR. An economic assessment is valuable for choosing between different ASR concepts and for comparing the economics of ASR to other water supply alternatives.

An ASR economic assessment typically comprises a life-cycle cost analysis that considers the capital and operation, maintenance and replacement (OM&R) costs associated with developing and operating an ASR system. The result of the exercise is a present value cost per volume (e.g., PV cost per acre-foot) of recharged, and potentially recovered water, that can be used as a common currency for comparing alternatives.

Described herein is an approach to conducting ASR economic assessments and tips for interpreting and applying the results.