ABSTRACT
This chapter presents the development and application of hydro-economic optimization model for the Eastern Nile basin. Water resources system analysis, focusing on management strategies for sustainable and optimal use of water resources, can play an important role in conflict resolution by means of understanding conflicts and cooperation options. A planning horizon of 7 years was used to consider the over-year storage capacity of the Eastern Nile system. The large infrastructure developments in Ethiopia are assumed to be operated mainly for hydropower. The irrigation demand varies between upstream and downstream according to the crop water requirement (CWR) which depends on the cropping pattern (crop factors Kc), and reference evapotranspiration (ETo). In the cooperative system management scenario, the Eastern Nile was optimized as one system and generates system-wide economic returns. The Eastern Nile was optimized for different hydrologic conditions to assess its hydrologic sensitivity.
