The European Commission, DG XVII, has published the 1995-1996 Activity Report for THERMIE, the demonstration component of the Community's JOULE/THERMIE programme for research, technological development and demonstration in the field of non-nuclear energy. The JOULE/THERMIE programme runs until 1998 and has a total budget of ECU 1,030 million, of which ECU 566 million are allocated to THERMIE. THERMIE is focused on the cost-effective, environmentally-friendly and targeted demonstration and promotion of clean and efficient energy technologies. These consist of: renewable energy technologies; rational use of energy in industry, buildings and transport; and cleaner and more efficient use of solid fuels and hydrocarbons. Essentially, THERMIE supports actions which aim to prove both the technological and economical viability and validity of energy technologies by highlighting their benefits and by assuring a wider replication and market penetration both in the EU and globally. THERMIE has participated in all the major technological breakthroughs in energy in the last decade, including: horizontal drilling, 3D and 4D seismic in oil and gas, cogeneration in industry, electric fuelled vehicles and 1MW sized wind turbines. The end of 1996 represents the mid-point for the JOULE/THERMIE programme and discussions are now underway throughout Europe with a view to defining the key issues which need to be addressed under the new Fifth Framework Programme. The THERMIE Activity Report 1995-1996 provides a mid-term review of activities to date, analyses the progress made and lessons learned and suggests a number of guidelines for the future.