The contract for a 1.5 million euro grant under MEDA for a 3 year project on `Solar thermal applications in the Mediterranean' commenced in April 2001. The project's objective is, depending on the Partner, to boost or create a sustainable market for solar water heaters, notably by developing local SMEs and networks of craftspeople using a process similar tothat implemented in Europe for the last ten years. It is specifically aimed at speeding up solarwater heaters' penetration in hotels, hospitals, schools, universities and buildings used by industries consuming hot water. The project has been drawn up in the framework of the MEDENER association of energy management agencies whose current members are the agencies of the EU's southern Member States (France, Greece, Italy, Portugal and Spain) and of six Mediterranean Partners (Algeria, Egypt, Lebanon, Morocco, Palestinian Authority, Tunisia).

The project's total cost is in excess of 2.3 million euro and the amount not covered by the EU grant is contributed by MEDENER members. Coordination, management and monitoring will be handled by French energy agency ADEME. The project will promote procedures based on GSR (Guarantee of Solar Results) contracts, which give owners or users the guarantee that the solar system will provide a certain amount of solar energy (in kWh). Such contracts also specify the financial compensation payable to the owner or user if the results are not obtained. Solar thermal energy is currently closest among renewable sources to competing economically with fossil fuels such as oil and gas. In addition the MEDENER project will benefit the environment by helping reduce air pollution.