Heat 1 teaspoon oil in a large nonstick skillet over medium-high heat.
Add onion; saut 5 minutes. Spoon onion into a bowl.
Add bell pepper, olives, water, and 1 teaspoon thyme; stir well. Cover and refrigerate at least 2 hours.
Prepare grill.
Combine 1 teaspoon olive oil, 2 teaspoons dried thyme, paprika, salt, garlic powder, and ground red pepper. Rub paprika mixture over both sides of fillets.
Place fillets on a grill rack coated with cooking spray; grill 5 minutes on each side or until fish flakes easily when tested with a fork.