WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

  


 
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS OF ENVIRONMENTAL POWER CORPORATION AS OF
SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               SEP-30-1998
<CASH>                                       1,065,344<1>
<SECURITIES>                                         0
<RECEIVABLES>                                9,788,558<2><3>
<ALLOWANCES>                                         0
<INVENTORY>                                    570,132
<CURRENT-ASSETS>                             8,115,609
<PP&E>                                         247,599
<DEPRECIATION>                                 142,746
<TOTAL-ASSETS>                              55,478,897
<CURRENT-LIABILITIES>                        9,701,820
<BONDS>                                      3,482,246
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                        100
<COMMON>                                       125,254
<OTHER-SE>                                 (4,806,185)
<TOTAL-LIABILITY-AND-EQUITY>                55,478,897
<SALES>                                     33,545,710
<TOTAL-REVENUES>                            33,545,710
<CGS>                                       14,313,809
<TOTAL-COSTS>                               14,313,809
<OTHER-EXPENSES>                            17,301,399
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             357,164
<INCOME-PRETAX>                                 83,054
<INCOME-TAX>                                    29,000
<INCOME-CONTINUING>                             54,054
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    54,054
<EPS-PRIMARY>                                     0.00
<EPS-DILUTED>                                     0.00
<FN>
<F1>INCLUDES CASH OF $698,978 WHICH IS RESTRICTED IN USE.
<F2>INCLUDES RECEIVABLES OF $3,523,097 WHICH ARE NONCURRENT.
<F3>INCLUDES RECEIVABLES OF $3,508,498 WHICH ARE SUBJECT TO A LEGAL PROCEEDING.
</FN>