SECURIITES AND
EXCHANGE COMMISSION  Washington, D.C.
20549  Form 10-KSB  Annual Report Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934  Date of
Report: December 31,
2007  FIRST NATIONAL POWER
CORPORATION (Exact name of
registrant as specified in its charter)  Delaware
333-62588
66-0349372(State of other jurisdiction of
incorporation or organization)
(Commission File
Number)
(IRS Employer
Identification No.)  #219  227 Bellevue Way
NE Bellevue, WA 98004 (Address of principal
executive offices)  Registrants
telephone number: (416) 918
6987  (Mark One) [X] Annual report
pursuant to Section 13 or 15(d) of the securities exchange act of 1934 for the
fiscal year ended December 31, 2007.  [
 ] Transition report
under Section 13 or 15(d) of the securities exchange act of 1934  Securities registered under Section
12(b) of the Exchange Act:   Securities registered under Section
12(g) of the Exchange Act:  Common stock  Check whether the issuer (1) filed
all reports required to be filed by Section 13 or 15(d) of the Exchange Act
during the past 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.  [X] Yes  [  ] No  Check if there is no disclosure of
delinquent filers in response to Item 405 or Regulation S-B contained in this
form, and no disclosure will be contained, to the best of registrants
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB
 [X]  Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)
 Yes xNo  State
issuers revenues for its most recent fiscal year: As of December
31, 2007, the Company has not generated any revenues.  State the aggregate market value of
the voting and non-voting common equity held by non-affiliates computed by
reference to the average bid and asked price of such common equity, as of March
15, 2008:  $771,870  State the
number of shares outstanding of each of the issuers classes of common equity,
as of the latest practicable date. As of December
31, 2007 there were 76,422,760 common shares issued and outstanding.  CAUTIONARY STATEMENTS
REGARDING FORWARD-LOOKING INFORMATION  Certain
statements in this annual report on Form 10-KSB contain or may contain
forward-looking statements that are subject to known and unknown risks,
uncertainties and other factors which may cause actual results, performance or
achievements to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. These
forward-looking statements were based on various factors and were derived
utilizing numerous assumptions and other factors that could cause our actual
results to differ materially from those in the forward-looking statements. These
factors include, but are not limited to, our ability to consummate a merger or
business combination, economic, political and market conditions and
fluctuations, government and industry regulation, interest rate risk, U.S. and
global competition, and other factors. Most of these factors are difficult to
predict accurately and are generally beyond our control. You should consider the
areas of risk described in connection with any forward-looking statements that
may be made herein. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this report.
 Readers should carefully review this annual report in its entirety,
including but not limited to our financial statements and the notes thereto.
 Except for our ongoing obligations to disclose material information under
the Federal securities laws, we undertake no obligation to release publicly any
revisions to any forward-looking statements, to report events or to report the
occurrence of unanticipated events. For any forward-looking statements contained
in any document, we claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of
1995.     PART I  Item
1. Description
of Business  Business Development First National Power Corporation
(First National) was incorporated as Capstone International Corporation on
November 16, 2000, in the state of Delaware.  The Company has never
declared bankruptcy, it has never been in receivership, and it has never been
involved in any legal action or proceedings. During the period from its
incorporation up until the end of the period covered by this report, the Company
has not made any significant purchase or sale of assets.  Business of Issuer First National is creating a business
based on what the Company calls the FNPR Green Energy Power Generation business
model.  It is designed to develop and implement new technology in the
electrical power generation industry and current technology configurations in
new and commercial applications.  Principal Products and
Services First Nationals goal is to build a
Power Company with capabilities to provide proprietary-generating stations
located on individual buildings, and Portable units for rural and emergency
services with applications for Third World development. It has expanded its
business goals to include investments in more traditional and proven
technologies but on a smaller scale than a full fledged power utility grade
facility.  The Market Compact wind turbine technology
offers a near term option of generating electricity from clean, sustainable,
renewable resources. First National believes many homeowners, farmers, apartment
and small business owners will be interested in having the choice of how their
electricity is produced and what environmental impacts their consumption causes.
The Company also believes many consumers want the type of freedom of choice
First National is seeking to supply with the development of its products.  The Company is in the final stages of
discussion and research on a number of small under 20-megawatt facilities to be
located in more rural and poorly served communities in both Canada and the US.
The Company has identified several technologies that will transform the raw
material to power; they have identified viable, stable and capable buyers and
willing supportive communities to permit and encourage the projects.  Competition and Competitive
Strategy The environmentally friendly
electrical power generation industry is in its infancy, and currently there is
very little competition throughout the world and virtually none in many
regions.  The competitive strategy of the
Company is to develop efficient products and services and to bring them to
market at a cost that will allow its customers to save money while they become
energy self-sufficient.  Of the possible new facilities, all
of the potential plants are in areas that are remote from traditional sources of
utility-supplied power and are being served by the grid only. There are large,
stable and well funded users expressing written interest in long term purchase
agreements. While there will always be the grid as an alternative, the Company
will require long term purchase agreements to be in place before they invest in
the technology, thus diminishing the competition.  New and or Innovative Products and
Services The very nature of the
environmentally friendly electrical power generation industry is such that
innovation is always being sought.  Sources and Availability of
Products and Supplies First National is not reliant on
other sources for products or supplies.  The Company is endeavoring to
develop its own products and supplies through ongoing relationships with
inventors, institutions and suppliers who work closely with First National.  Dependence on One or a Few Major
Customers Virtually every North American and
European building owner is seeking the types of products and services First
National is developing.  First National is not dependant on either one or a
few major consumers.    Patent,
Trademark, License & Franchise Restrictions and Contractual Obligations
& Concessions There are no inherent factors or
circumstances associated with this industry, or any of the products or services
that First National plans to provide that would give cause for any greater
exposure of patent, trademark or license infringements or violations than with
any other commonly available technology. The Company has also not entered into
any agreements or other contracts that have given, or could give rise to
obligations or concessions.  The new plants will be built under
license from the patent holders, thus abrogating First National Powers need to
protect any patents on the chosen technology.  Governmental Controls and
Approvals The environmentally friendly energy
generation sector does not come under any special government controls or
approval processes.  However, this being a relatively new and growing
sector, it is possible that governments could impose new controls or approval
processes in the future.  Existing or Probable Government
Regulations Many municipalities and some states
and provinces have regulations concerning the erection of windmills and other
tall and cumbersome mechanical devices.  There are also the usual licensing
requirements; however there are no government regulations that we are aware of,
either existing or being contemplated, that would adversely affect the Company's
ability to operate.  Labor Standards Laws, Workplace Occupational Health
and Safety Regulations, and local government business licensing requirements are
the only other government regulations that will affect the Company.  Research and Development
Activities and Costs First National has opened discussions
with various parties that it hopes will lead to the development of new products
or new applications of existing products, but has not undertaken any research
and development to date.  It has plans to initiate research or development
sometime in 2008. The Company is negotiating contractual relationships with two
large institutions in North America, who will work with First National to
develop, patent and market innovative energy-generating tools.  Compliance With Environmental
Laws The only environmental laws that
pertain to the Companys operations concern restrictions on windmills in some
locations, as well as restrictions on the type of structures that can be mounted
on top of commercial buildings.  Compliance with these rules is not
expected to be a major obstacle for the Company.  The new facilities will be granted
provincial / state and federal environmental certificates before First National
accepts ownership of the plants.  Facilities First National does not own or rent
facilities of any kind.  At present, the Company is operating from its
official address that is located within the offices of the Company's CFO.
 The Company intends to continue to operate from this location for as long
as possible, and until it has sufficient revenues from sales to support a
facility. First National anticipates that if any of the current projects come to
production, that they will need to invest in plants that will be operated under
a contractual arrangement with qualified contractors, and they will need
physical offices to control the administration and engineering oversights.  Employees First National does not expect to
hire employees in the foreseeable future.  If the Company requires
employees, it expects that they will be hired under a contract with an
arms-length third party operator. The Company is presently a Virtual
Management model corporation.  First National has no employees and
management works under consulting contracts optimizing cash flow, as well as
other efficiencies, such as facilities.  The current Board of Directors is
made up of one individual who also acts as the officer of the Company.
 .  Reports to Security
Holders First National will voluntarily make
available to securities holders an annual report, including audited financials
on Form 10-K or Form 10-KSB.  The public may read and copy any
materials filed with the SEC at the SEC's Public Reference Room at 100 F Street
NE, Washington, D.C. 20549. The public may obtain information about the
operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The
SEC maintains an Internet site that contains reports, proxy and information
statements, and other information regarding issuers that file electronically
with the SEC at http://www.sec.gov.    Item
2. Description
of Property.  First National does not own any real
property.  The Company does not have any
investments or interests in any real estate. First National does not invest in
real estate mortgages, nor does it invest in Securities of, or interests in,
persons primarily engaged in real estate activities.  Item
3. Legal
Proceedings  First National is not a party to any
pending legal proceedings.  Item 4.  Submission of
Matters to a Vote of Security Holders.  No matter was submitted during the
fourth quarter of the fiscal year ended December 31, 2007, to a vote of security
holders, through the solicitation of proxies or otherwise.  PART II  Item 5.  Market for Common
Equity and Related Stockholder Matters.  Market Information  The Companys stock trades on the
Over-the Counter Bulletin Board (OTCBB) under the symbol FNPR.  During 2006
and 2007, the high and low trading price for each quarter was as follows:  Year ended December 31,
2007
High
Low1st quarter, ended
March 31, 2007
$ 0.060
$ 0.0402nd quarter, ended
June 30, 2007
$ 0.060
$ 0.0403rd quarter, ended
September 30, 2007
$ 0.060
$ 0.0404th quarter, ended
December 31, 2007
$ 0.050
$ 0.020Year ended December 31,
20061st quarter, ended
March 31, 2006
$
 0.189
$
 0.0852nd quarter, ended
June 30, 2006
$
 0.178
$
 0.1003rd quarter, ended
September 30, 2006
$
 0.135
$
 0.0354th quarter, ended
December 31, 2006
$
 0.098
$
 0.040   In 2005, the Board of Directors for
the Company created and approved an Employee Stock Incentive Plan (2005 ESIP).
The 2005 ESIP was for 3 million shares and is disbursed by the Board as
compensation for services by officers, contractors and consultants.  The Company no longer issues stock
under the 2005 ESIP.  In 2004, the Company sold shares
under a subscription agreement. In 2007, the 146,000 shares sold under that
subscription agreement were issued to the purchasers.  Holders.  As of December 31, 2007, the Company
had forty two (42) shareholders of record of its common stock.  Dividends.  As of December 31, 2007, registrant
has not paid any dividends to its shareholders. There are no restrictions which
would limit the ability of First National to pay dividends on common equity or
that are likely to do so in the future. First National does not intend to pay
dividends to its shareholders in the foreseeable future.    Recent
Sales of Unregistered Securities  The Company has not sold securities
during the fiscal year ended December 31, 2006, without registering the
securities under the Securities Act of 1933.  Item
6. Managements
Discussion and Analysis or Plan of Operation.  First National Power Corporation is a
developmental stage that spent considerable time working with a US-based
inventor to bring the Propless WindPower project forward, but as the project was
not progressing as quickly as either party intended, the parties have ceased
cooperative efforts.  The Company has design work under way
for the development of the Green Oasis, a stand alone power generating, multiple
mode communication and other remote service capabilities. The Company is seeking
customers who will to take such mobile multiple use machines into remote areas
of the world and will encourage the Company to complete the design.  With
limited research funds, the Company has elected to focus on projects that have a
higher potential for success in producing shorter-term revenues.  The Company spent several months
working with the Town of Millinocket to design, build and operate a bio-mass
facility on their new industrial site. The Company spent several months getting
certificates, assurances, contracts and letters of intent in place, only to find
the power generating lines were unable to carry the meager load being planned.
That project is currently on standby, as the transmission lines are scheduled
for upgrades in the next couple of years.  Finally, the Company is in
discussions with other partners in areas where power can be easily sold to ready
users. The design package that was created for Millinocket can be used in other
locations.  Green Energy Power Generation,
Green Oasis  and Project Biomass  The Green Energy Power Generation
(GEPG) business unit is designed to implement cutting edge technology not
formerly utilized in the electrical power generation industry. The goal is to
build a Power company with proprietary generating stations located on customers'
buildings. The continuing failure of international power grids underlines the
need for the technology that is currently being developed by First National. The
Companys plan calls for individualized power generation units to support small
industry and high-rise commercial and residential complexes.  The Green Oasis is a project to
provide services using direct and stored Green energy, water purification
capabilities, internet and telephony by mobile units designed to go anywhere on
a temporary or permanent basis, to support or become the principal source of
survival in times of disaster. Each unit will be pre-designed on an
individualized basis in a modular format to custom fit the environment in which
it will be deployed and to allow for maximum utilization.  Each unit will
also carry pre-charged portable satellite battery modules that will allow
individuals to transport power to specific areas on an as needed basis to
support temporary usage in emergencies.  The Green Oasis is the companys
development stage project. The initial configuration of the base model has been
decided, and consultants are working to bring together the components to
determine the power draw, hence the required power generation requirements. Once
that base model is actually designed and a prototype produced, the Company has
identified the first customer for the unit.  The Biomass project will use
under-license, existing technologies from one or more available suppliers. The
Company has gathered letters of interest from buyers of wholesale power, letters
of support from communities willing to license and support such a project,
gathered letters of intent from interested suppliers of raw material and been in
discussions with potential operators of the facilities. There are 4 separate,
distinct and unrelated projects, all to use such Biomass technology on which the
Company has been actively moving forward.  Organizational Structure  The Company has no employees and
Management works under consulting contracts optimizing cash flow and
infrastructure efficiencies. The current Board is made up of one individual who
also acts as the Officer of the company. Professionals in their individual
fields supply all other services on an as needed basis.  Growth, Revenue & Financial
Plans  The Company has recently received a
loan from York Truck. Management believes the funds now available to the Company
will be sufficient to see them to the conclusion of a first tranche financing of
one of the projects currently in   development.
Once the financing for any of the projects is underway, there will be sufficient
funds available to fund the necessary administration.  In the current year, the company is
anticipating moving gradually from the development stage to one of an operating
company. To accomplish the transformation, the company will be required to raise
funds.  If the company does solidify a plan that will require funding, they
will be seeking either partners that will provide the funding, or they will be
offering equity or debt financing, dependant upon the completion of the
Companys business plan. Other expenses administrative in nature will be paid by
related and unrelated parties through loans or other means, including the sale
of common or preferred stock.  The Company had no off balance sheet
transactions during 2007, and expects that as part of the financing options for
the projects currently contemplated, that there may well be a need to finance
using such alternative financing options in 2008.  Item
7. Financial
Statements


First National Power Corporation (A Development Stage Company) Financial Statements Together with Report of Independent Registered
Public Accounting Firm December 31, 2007 and 2006 Amounts expressed in US Dollars    Index Report of
Independent Registered Public Accounting Firm

3Independent
auditors report

4Balance
Sheets as at December 31, 2007 and December 31, 2006

5Statements
of Operations for the years ended December 31, 2007 and December 31, 2006
and for the cumulative period since inception

6Statements
of Cash Flows for the years ended December 31, 2007 and December 31, 2006
and for the cumulative period since inception

7Statements
of Changes in Stockholders Deficiency for the period since
inception

8  9Notes to
Financial Statements

10 - 13               FIRST NATIONAL POWER CORPORATION(A Development Stage Company)Balance SheetsAs of December 31, 2007 and December 31, 2006(Amounts expressed in US Dollars)2007

2006$

$ASSETSCURRENT
ASSETSCash
158,313

203,272158,313

203,272LIABILITIESCURRENT
LIABILITIESAccounts
payable and accrued liabilities (note 4)
8,875

23,074Loans
from shareholders (note 5)
258,313

258,313267,188

281,387Going
Concern  note 2STOCKHOLDERS
DEFICIENCYCAPITAL
STOCK (note 6)
76,424

76,278CAPITAL
STOCK SUBSCRIBED
-

146ADDITIONAL
PAID-IN-CAPITAL
320,937

320,937DEFICIT,
ACCUMULATED DURING THE DEVELOPMENT STAGE
(506,236)

(475,476)(108,875)

(78,115)158,313

203,272APPROVED ON BEHALF OF THE BOARDDirector  The Notes form an integral
part of the consolidated financial statements Page 5    FIRST NATIONAL POWER CORPORATION(A Development Stage Company)Statements of OperationsFor the years ended December 31, 2007 and December 31,
2006 and for the cumulative period since inception(Amounts expressed in US Dollars)CumulativeSinceInception

2007

2006$

$

$OPERATING
EXPENSESInterest Income
(4,900)

(4,900)

-Forgiveness of accounts
payable and loans
(47,394)General and
administrative expenses
327,484

9,842

32,732(Gain) Loss on Foreign
Exchange
289

338

(49)Project development
costs (note 8)
227,531

25,480

-Interest Expense
3,226

-

279506,236

30,760

32,962NET
LOSS
(506,236)

(30,760)

(32,962)Net
loss per share, basic and diluted


$
 (0.00)

$
  (0.00)Weighted
average common shares outstanding

76,290,360

76,276,760        The Notes form an integral
part of the consolidated financial statements Page 6    FIRST NATIONAL POWER CORPORATION(A Development Stage Company)Statements of Cash FlowsFor the years ended December 31, 2007 and December 31,
2006 and for the cumulative period since inception(Amounts expressed in US Dollars)CumulativeSinceInception

2007

2006$

$

$CASH FLOWS FROM OPERATING
ACTIVITIESNet loss
(506,236)

(30,760)

(32,962)Adjustments for items
not affecting cashShares
issued for services rendered
299,890Forgiveness
of accounts payable and loans
(47,394)Increase
(decrease) in accounts payableand
accrued liabilities
12,874

(14,199)

(1,534)Net cash
used in operating activities
(240,886)

(44,959)

(34,496)CASH FLOWS FROM
FINANCING ACTIVITIESLoans from Shareholders
301,708

-

237,733Proceeds from sale of
capital stock
26,954Proceeds
from capital stock subscriptions
70,517Net cash
provided by financing activities
399,179

-

237,733NET INCREASE (DECREASE)
IN CASH
158,313

(44,959)

203,237Cash, beginning of
period
-

203,272

35CASH, END OF PERIOD
158,313

158,313

203,272INCOME TAXES PAID
-

-

-INTEREST PAID
3,226

-

279       The Notes form an integral
part of the consolidated financial statements Page 7


FIRST NATIONAL POWER CORPORATION(A Development Stage Company)Statements of Changes in Stockholders
DeficiencyFrom Inception until December 31, 2007(Amounts expressed in US Dollars)DeficitCommon



Additional

accumulatedCommon

Stock

Common

Paid-In

during
theStock

Number
of

Stock

Capital

developmentAmount

Shares

Subscribed

(Discount)

stage$



$

$

$Balance at November 16,
2000Issuance of common
stock for cash
100

100,000



900Net Loss
for the Period








(968)Balance as of December
31, 2000
100

100,000

-

900

(968)Issuance of stock for
cash
400

400,000



3,600Issuance of stock for
cash
700

700,000



6,300Issuance of stock for
cash
850

850,000



7,650Currency Translation






100Net Loss
for the Year








(23,954)Balance as of December
31, 2001
2,050

2,050,000

-

18,550

(24,922)Expiration of
rescission offer forsale of
stock
64

63,536



6,290Net Loss
for the Year








(26,047)Balance as of December
31, 2002
2,114

2,113,536

-

24,840

(50,969)Stock
split 5:1
8,454

8,454,144



(8,454)Shares
issued for services rendered
200

200,000



79,800Net Loss
for the Year








(107,245)Balance as of December
31, 2003
10,768

10,767,680

-

96,186

(158,214)Stock
split 7:1
64,606

64,606,080



(64,606)Shares
issued for services rendered
30

30,000



15,870Shares
subscribed




146

70,371Shares
issued for services rendered
44

43,000



9,956Net Loss
for the Year








(75,414)Balance as of December
31, 2004
75,448

75,446,760

146

127,777

(233,628)Shares
issued for services rendered
830

830,000



193,160Net Loss
for the Year








(208,886)Balance as of December
31, 2005
76,278

76,276,760

146

320,937

(442,514)Net Loss
for the Year








(32,962)Balance as of December
31, 2006
76,278

76,276,760

146

320,937

(475,476)Net Loss
for the Year








(30,760)Issue shares bought by
subscription
146

146,000

(146)Balance as of December
31, 2007
76,424

76,422,760

-

320,937

(506,236)  The Notes form an integral
part of the consolidated financial statements Page 8


First National Power Corporation (A Development Stage Company) Notes to the Financial Statements December 31, 2007 and 2006 Amounts expressed in US Dollars         1 GENERAL  The Company was
incorporated on November 16, 2000 under the laws of the State of Delaware.
 The business purpose of the Company was to acquire funeral facilities and
the selling of prepaid funeral programs.  In January of 2004 the Company
changed its business purpose to provision of wind-driven solutions to power
generation requirements. Current projects for the company are the completion of
commercialization of a number of power generation projects from bio-mass
technologies    2 GOING
CONCERN  The Companys
financial statements are prepared using accounting principles generally accepted
in the United States of America and applicable to a going concern, which
contemplates the realization of assets and liquidation of liabilities in the
normal course of business.  However, the Company has not generated any
revenues from its planned principal operations through December 31, 2007.
 These conditions raise substantial doubt about the Company's ability to
continue as a going concern. The financial statements do not include any
adjustments that might result from this uncertainty.    3 SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES  a) Use of
Estimates  These financial
statements have been prepared in accordance with generally accepted accounting
principles in the United States of America. Because a precise determination of
assets and liabilities, and correspondingly revenues and expenses, depend on
future events, the preparation of financial statements for any period
necessarily involves the use of estimates and assumptions. Actual amounts may
differ from these estimates. These financial statements have, in managements
opinion, been properly prepared within reasonable limits of materiality and
within the framework of the accounting policies summarized below. Significant
estimates include the recording of accruals and the determination of the
valuation of allowances for deferred tax assets.  b) Financial
Instruments  The carrying
amount of the Companys accounts payable and accrued liabilities approximates
their fair value, because of the short maturity of these instruments.  c) Income
Taxes  The Company
accounts for income taxes under the provisions of Statement of Financial
Accounting Standards No. 109, which requires recognition of deferred tax assets
and liabilities for the expected future tax consequences of events that have
been included in the financial statements or tax returns.  Deferred income
taxes are provided using the liability method.  Under the liability method,
deferred income taxes are recognized for all significant temporary differences
between the tax and financial statement bases of assets and liabilities.     First National Power
Corporation (A Development Stage
Company) Notes to the Financial Statements December 31, 2007 and
2006 Amounts expressed in US
Dollars     Current income
tax expense (recovery) is the amount of income taxes expected to be payable
(recoverable) for the current year.  A deferred tax asset and/or liability
is computed for both the expected future impact of differences between the
financial statement and tax bases of assets and liabilities and for the expected
future tax benefit to be derived from tax losses.  Valuation allowances are
established when necessary to reduce the deferred tax asset to the amount
expected to be "more likely than not" to be realized in future returns.
 Tax law and rate changes are reflected in income in the period such
changes are enacted.  d) Earnings or
Loss Per Share  The Corporation
has adopted FSA No. 128, Earnings per Share, which requires disclosure on the
financial statements of basic and diluted earnings (loss) per share.
 Basic earnings (loss) per share are computed by dividing net income (loss)
by the weighted average numbers of common shares outstanding for the year.
 Diluted earnings (loss) per share is computed by dividing net income
(loss) by the weighted average number of common shares outstanding plus common
stock equivalents (if dilutive) related to stock options and warrants for each
year.  e) Comprehensive
Income  The Company has
adopted SFAS No. 130, "Reporting Comprehensive Income." This statement
establishes standards for reporting comprehensive income and its components in a
financial statement. Comprehensive income as defined includes all changes in
equity (net assets) during a period from non-owner sources. Examples of items to
be included in comprehensive income, which are excluded from net income, include
foreign currency translation adjustments and unrealized gains and losses on
available-for-sale securities.  Comprehensive income (loss) is not
presented in the Company's financial statements since there is no difference
between net loss and comprehensive loss in any period presented.  f) Recent
Pronouncements   In February 2006,
FASB issued SFAS No. 155, Accounting for Certain Hybrid Financial Instruments.
SFAS No. 155 amends SFAS No 133, Accounting for Derivative Instruments and
Hedging Activities, and SFAF No. 140, Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities. SFAS No. 155, permits
fair value remeasurement for any hybrid financial instrument that contains an
embedded derivative that otherwise would require bifurcation, clarifies which
interest-only strips and principal-only strips are not subject to the
requirements of SFAS No. 133, establishes a requirement to evaluate interest in
securitized financial assets to identify interests that are freestanding
derivatives or that are hybrid financial instruments that contain an embedded
derivative requiring bifurcation, clarifies that concentrations of credit risk
in the form of subordination are not embedded derivatives, and amends SFAS No.
140 to eliminate the prohibition on the qualifying special-purpose entity from
holding a derivative financial instrument that pertains to a beneficial interest
other than another derivative financial instrument. This statement is effective
for all financial instruments acquired or issued after the beginning of the
Companys first fiscal year that begins after September 15, 2006.  In March 2006,
the FASB issued SFAS No. 156. This Statement amends FASB Statement No. 140,
Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities, with respect to the accounting for separately recognized
servicing assets and servicing liabilities. This Statement is effective as of
the beginning of its first fiscal year that begins after September 15, 2006. An
entity should apply the requirements for recognition and initial measurement of
servicing assets and servicing liabilities prospectively to all transactions
after the effective date of this Statement.      First National Power Corporation (A Development Stage Company) Notes to the Financial Statements December 31, 2007 and 2006 Amounts expressed in US Dollars     In September
2006, the FASB issued SFAS No. 157 and No. 158. Statement No. 157 defines fair
value, establishes a framework for measuring fair value in generally accepted
accounting principles (GAAP), and expands disclosures about fair value
measurements. This Statement applies under other accounting pronouncements that
require or permit fair value measurements, the Board having previously concluded
in those accounting pronouncements that fair value is the relevant measurement
attribute. Accordingly, this Statement does not require any new fair value
measurements. However, for some entities, the application of this Statement will
change current practice.  Statement No. 158
is an amendment of FASB Statements No. 87, 88, 106, and 132(R). It improves
financial reporting by requiring an employer to recognize the over funded or
under funded status of a defined benefit postretirement plan (other than a
multiemployer plan) as an asset or liability in its statement of financial
position and to recognize changes in that funded status in the year in which the
changes occur through comprehensive income of a business entity or changes in
unrestricted net assets of a not-for-profit organization. This Statement also
improves financial reporting by requiring an employer to measure the funded
status of a plan as of the date of its year-end statement of financial position,
with limited exceptions.  In February 2007,
the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets
and Financial Liabilities  Including an Amendment of FASB Statement
No. 115,  SFAS 159 allows entities to voluntarily choose, at
specified election dates, to measure many financial assets and financial
liabilities (as well as certain nonfinancial instruments that are similar to
financial instruments) at fair value. The election is made on an
instrument-by-instrument basis and is irrevocable. If the fair value option is
elected for an instrument, the Statement specifies that all subsequent changes
in fair value for that instrument shall be reported in earnings.  In December 2007,
the FASB issued SFAS No. 141 (revised), Business Combinations.  SFAS
141(R) changes the accounting for business combinations including the
measurement of acquirer shares issued in consideration for a business
combination, the recognition of contingent consideration, the accounting for
preacquisition gain and loss contingencies, the recognition of capitalized
in-process research and development, the accounting for acquisition-related
restructuring cost accruals, the treatment of acquisition related transaction
costs and the recognition of changes in the acquirers income tax valuation
allowance. SFAS 141(R) applies prospectively to business combinations for
which the acquisition date is on or after the beginning of the first annual
reporting period beginning on or after December 15, 2008, except for
certain tax adjustments for prior business combinations.  In December 2007,
the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated
Financial Statements, an amendment of ARB No. 51. SFAS 160 changes the
accounting for noncontrolling (minority) interests in consolidated financial
statements including the requirements to classify noncontrolling interests as a
component of consolidated stockholders equity, and the elimination of minority
interest accounting in results of operations with earnings attributable to
noncontrolling interests reported as part of consolidated earnings.
Additionally, SFAS 160 revises the accounting for both increases and decreases
in a parents controlling ownership interest. SFAS 160 is effective for fiscal
years beginning after December 15, 2008, with early adoption prohibited.  The Company
believes that the above standards would not have a material impact on its
financial position, results of operations or cash flows.        First National Power Corporation (A Development Stage Company) Notes to the Financial Statements December 31, 2007 and 2006 Amounts expressed in US Dollars     4 ACCOUNTS
PAYABLE AND ACCRUED LIABILITIES  Accounts payable
and accrued liabilities are comprised of the following  2007
2006Trade Payables

$654
$8,074Accrued Professional
Fees

$
8,221
$15,000$
8,875
$  Included in Trade
Payables is an amount owing to an officer / director of $0 ($1,618 in 2006)    5 LOANS FROM
SHAREHOLDERS  The loans are
unsecured, non-interest bearing and have no specific terms of repayment. The
fair value of the loans has been estimated by discounting future cash flows
using an estimated rate of return of 5% per annum. The fair value amounts to
$246,000. In accounts payable the company has recorded an amount owing to the
officer / director of the company in the amount of $0 ($1,618 in 2006).    6 CAPITAL
STOCK  a) Authorized  100,000,000
Common shares with a par value of $0.001 per share  b) Issued  76,422,760 Common
shares (76,276,760 in 2006)  c) Changes to
Issued Share Capital  During the year
ended December 31, 2007, the Company issued 146,000 shares pursuant to the stock
subscription agreements, No shares were issued in 2006.    d) Stock
Subscription Agreements  In 2004, the
Company has executed subscription agreements to sell 136,000 shares of its
common stock at a price or $0.50 per share, and 10,000 shares at $0.25 per share
for a total of $70,517. Those shares were issued in November 2007.       First National Power Corporation (A Development Stage Company) Notes to the Financial Statements December 31, 2007 and 2006 Amounts expressed in US Dollars     7 INCOME
TAXES  a) Deferred Income
Taxes  The tax effect of significant
temporary differences that gave rise to the benefit is as follows:  2007
2006Operating Losses Available to
offset future taxes

$164,510
$154,513Valuation Allowance

($164,510)
($154,513)Net Deferred Assets

$
            0
$  The Company has determined that
realization of a deferred tax asset is not likely and therefore a valuation
allowance has been recorded against this deferred income tax asset.  b) Current
Income Taxes  Current income
taxes consist of  2007
2006Amounts calculated at
statutory rates
$
    (9,997)
$
    (10,696)Permanent differences
0
16(9,997)
(10,680)Change in valuation
allowances
9,997
10,696$
            0
$
            0      First National Power Corporation (A Development Stage Company) Notes to the Financial Statements December 31, 2007 and 2006 Amounts expressed in US Dollars      c) Income
tax losses carried forward  The company has
non-capital losses for tax purposes which can be applied against future taxable
income. These losses expire as follows:  2027

$ 30,7602026

32,9122025

208,8872024

233,627Total

$
506,186    8 PROJECT
DEVELOPMENT COSTS  In accordance
with generally accepted accounting principles, fees and expenses incurred while
developing a project cannot be capitalized until there is a reasonable
expectation of a revenue stream. As the Company is still in the very early
stages of power generation projects, it was determined that costs incurred to
date had to be expensed.     9 SEGMENTED
INFORMATION  The Company
operates in only one business segment, namely the development of alternative
energy sources. All of the Companys assets are located in the United States of
America.            Item 8.  Changes in and
Disagreements with Accountants on Accounting and Financial
Disclosures.  On August 3, 2004, the Company
retained the services of Schwartz Levitsky Feldman, LLP, Chartered Accountants,
to act as the auditor for the Company. There are no disagreements between the
Company and the auditor.  Item 8A.  Disclosure
Controls and Procedures  As of December 31, 2007, the Company
carried out an evaluation of the effectiveness of the Companys disclosure
controls and procedures (as defined by Rule 13a-14(c) under the Securities
Exchange Act of 1934) under the supervision and with the participation of the
Companys Chief Executive Officer and Chief Financial Officer. Based on and as
of the date of such evaluation, the aforementioned officers have concluded that
the Companys disclosure controls and procedures were effective.  The Company also maintains a system
of internal accounting controls that is designed to provide assurance that
assets are safeguarded and that transactions are executed in accordance with
managements authorization and properly recorded. This system is continually
reviewed and is augmented by written policies and procedures, the careful
selection and training of qualified personnel and an internal audit program to
monitor its effectiveness. During the fiscal year ended December 31, 2007, there
were no significant changes to this system of internal controls or in other
factors that could significantly affect those controls.  Item 8B.  Other
Information  No events required to be reported on
Form 8K occurred during the fourth quarter of the fiscal year ended December 31,
2007.   PART III  Item 9.  Directors,
Executive Officers, Promoters and Control Persons; Compliance with Section 16(a)
of the Exchange Act  Peter Wanner, Director, Treasurer,
Chief Financial Officer.  Mr. Wanner, age 54, has 14 years experience
as a business consultant to start-up companies, as well as companies in
refinancing and turnaround. He also has 15 years of experience in financing
accounting, including 2 years in public accounting as well as international
experience working in Mexico, United Kingdom and United States. Mr. Wanner has
served as a director since May 4, 2004.  The term of office for any
director is for a period of one year, or until the next annual meeting (or
special meeting in lieu of an annual) of the shareholders.  Significant Employees.
 Other than its executive officer and director, the Company has no other
employees.  No officer or director of the Company
has been, within the past five years, involved in any legal proceedings,
including bankruptcy, criminal proceedings or civil, nor are they subject to any
order, judgment or decree, not subsequently reversed, suspended or vacated, of
an court of competent jurisdiction, permanently or temporarily enjoining,
barring, suspending or otherwise limiting his involvement in any type of
business, securities or banking activities.  The Board of Directors does have
Peter Wanner, who is a qualified accountant certified in Canada and Ontario to
act as an audit committee financial expert serving on its audit committee.  Compliance with Section 16(a) of
the Exchange Act.  As of the date of filing this report,
the Company is not aware of any person who, at any time during the year ended
December 31, 2007, was a director, officer, beneficial owner of more than ten
percent of any class of equity securities of the registrant that failed to file
on a timely basis reports required by Section 16(a) during the most recent
fiscal year or prior years.  Code of Ethics  As of the date of filing this report,
the Company has not adopted a Code of Ethics. .        Item 10.  Executive
Compensation.  First National's Executive officers
do not currently receive and are not accruing any compensation.  Item 11.  Security
Ownership of Certain Beneficial Owners and Management.  The following is a table detailing
the current shareholders of our stock as of December 31, 2007, who own 5% or
more of the common stock, and shares owned by our Directors and Officers:  Title of
Class
Name and Address of Beneficial
Owner
Amount and
Nature of
Beneficial
Ownership
Percent
of ClassCommon
Peter Wanner
165,000
0.002%Common
Directors and officers as a
group
165,000
0.002%  Item 12.  Certain
Relationships and Related Transactions.  No persons who may, in the future, be
considered a promoter will receive or expect to receive assets, services or
other consideration from the Company.  No assets will be or are expected to
be acquired from any promoter on behalf of our company.  We have not
entered into any agreements that require disclosure to our shareholders.  Item 13.
 Exhibits  Exhibits  Exhibit No.
Document
Location3.1
Articles of
Incorporation
Previously Filed3.2
Bylaws
Previously filed31
Sect. 302 Certification
Included32
Sect. 906 Certification
Included   Item 14.  Principal
Accountant Fees and Services  1. Audit
Fees: Aggregate
 fees billed for each of the last two (2) fiscal years for professional
services rendered by the principal accountant for the audit of the annual
financial statements and review of financial statements included on Form 10-QSB:  2006: $9,391 2007: $9,271  2. Audit-Related
Fees: Aggregate fees
billed in each of the last two (2) fiscal years for assurance and related
services by the principal accountant that are reasonably related to the
performance of the audit or review of the financial statements and are not
reported previously.  2006: $0 2007: $0  3. Tax
Fees: Aggregate fees
billed in each of the last two (2) fiscal years for professional services
rendered by the principal accountant for tax compliance, tax advice, and tax
planning.  2006: $0 2007: $0        4. All
Other Fees: Aggregate fees
billed in each of the last two (2) fiscal years for products and services
provided by the principal accountant, other than the services previously
reported.  2006: $0 2007: $0  5. Audit Committee
Pre-Approval Procedures.  The Board of Directors has not, to date,
appointed an Audit Committee.         Signatures  In accordance with Section 13 or
15(d) of the Exchange Act, the registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.  FIRST NATIONAL POWER CORPORATION   /s/ Peter
Wanner Peter Wanner, CFO Dated: March 24, 2008   In accordance with the Exchange Act,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.   /s/ Peter
Wanner Peter Wanner, CFO, Treasurer,
Director Dated: March 24, 2008