-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 M2AzYXJ5VxD1EbOYVeOrkSlHGXpZ+AY13svRbUySKWgc9me6BB41JBzyBUrnhkyQ
 e8CjTRPPkSmBM2yG1GRXtw==

<SEC-DOCUMENT>0001181431-09-059158.txt : 20091230
<SEC-HEADER>0001181431-09-059158.hdr.sgml : 20091230
<ACCEPTANCE-DATETIME>20091230152318
ACCESSION NUMBER:		0001181431-09-059158
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20091229
FILED AS OF DATE:		20091230
DATE AS OF CHANGE:		20091230

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Ballentine Roger
		CENTRAL INDEX KEY:			0001412104

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32393
		FILM NUMBER:		091266368

	MAIL ADDRESS:	
		STREET 1:		ONE CATE STREET
		STREET 2:		4TH FLOOR
		CITY:			PORTSMOUTH
		STATE:			NH
		ZIP:			03801

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ENVIRONMENTAL POWER CORP
		CENTRAL INDEX KEY:			0000805012
		STANDARD INDUSTRIAL CLASSIFICATION:	COGENERATION SERVICES & SMALL POWER PRODUCERS [4991]
		IRS NUMBER:				042782065
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		120 WHITE PLAINS RD
		STREET 2:		SUITE 610
		CITY:			TARRYTOWN
		STATE:			NY
		ZIP:			10591-5546
		BUSINESS PHONE:		914-631-1435

	MAIL ADDRESS:	
		STREET 1:		120 WHITE PLAINS RD
		STREET 2:		SUITE 610
		CITY:			TARRYTOWN
		STATE:			NY
		ZIP:			10591-5546
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd261093.xml
<DESCRIPTION>2009 ANNUAL SAR GRANT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2009-12-29</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

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

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001412104</rptOwnerCik>
            <rptOwnerName>Ballentine Roger</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>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Appreciation Right</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.20</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2009-12-29</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>15000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2009-12-29</value>
            </exerciseDate>
            <expirationDate>
                <value>2019-12-28</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>15000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>15000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The stock appreciation right is fully vested, and may be settled in cash, shares of the Company's common stock or a combination thereof, at the Company's discretion.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Scott E. Pueschel, Attorney-in-Fact for Roger S. Ballentine</signatureName>
        <signatureDate>2009-12-30</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----