<SUBMISSION>
<ACCESSION-NUMBER>0001181431-08-037051
<TYPE>4
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20080603
<FILING-DATE>20080605
<DATE-OF-FILING-DATE-CHANGE>20080605
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>ENVIRONMENTAL POWER CORP
<CIK>0000805012
<ASSIGNED-SIC>4991
<IRS-NUMBER>042782065
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>120 WHITE PLAINS RD
<STREET2>SUITE 610
<CITY>TARRYTOWN
<STATE>NY
<ZIP>10591-5546
<PHONE>914-631-1435
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>120 WHITE PLAINS RD
<STREET2>SUITE 610
<CITY>TARRYTOWN
<STATE>NY
<ZIP>10591-5546
</MAIL-ADDRESS>
</ISSUER>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>Thomas Michael Eric
<CIK>0001399910
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>4
<ACT>34
<FILE-NUMBER>001-32393
<FILM-NUMBER>08882923
</FILING-VALUES>
<BUSINESS-ADDRESS>
<PHONE>603-431-1780
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ONE CATE STREET
<STREET2>2ND FLOOR
<CITY>PORTSMOUTH
<STATE>NH
<ZIP>03801
</MAIL-ADDRESS>
</REPORTING-OWNER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd209963.xml
<DESCRIPTION>JUNE 2008 EQUITY GRANTS
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-06-03</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000805012</issuerCik>
        <issuerName>ENVIRONMENTAL POWER CORP</issuerName>
        <issuerTradingSymbol>( EPG )</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001399910</rptOwnerCik>
            <rptOwnerName>Thomas Michael Eric</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O ENVIRONMENTAL POWER CORPORATION</rptOwnerStreet1>
            <rptOwnerStreet2>120 WHITE PLAINS ROAD, 6TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>TARRYTOWN</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10591</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>SVP, Chief Financial Officer</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2008-06-03</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>5000</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.01</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>5000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Appreciation Right</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>5.52</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-06-03</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>11665</value>
                    <footnoteId id="F2"/>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F4"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F3"/>
            </exerciseDate>
            <expirationDate>
                <value>2018-06-02</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>11665</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>11665</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Represents shares of common stock subject to a restricted stock award under the Company's 2006 Equity Incentive Plan.  The award vests in two equal installments on May 1, 2009 and May 1, 2010.</footnote>
        <footnote id="F2">Represents the number of shares of common stock used to measure the appreciation in value, if any, of the stock appreciation right.  The stock appreciation right may be settled in cash, in shares of common stock, or in a combination thereof at the election of the Company.</footnote>
        <footnote id="F3">The stock appreciation right vests in two equal installments on May 1, 2009 and May 1, 2010.</footnote>
        <footnote id="F4">Not Applicable.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Scott E. Pueschel, Attorney-in-Fact for Michael Eric Thomas</signatureName>
        <signatureDate>2008-06-05</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
