Hybrid energy source is one effective solution. In this paper, as an example, we show our trolley and on-board battery hybrid controlled tramcar, developed to reduce regeneration cancellation. With the trolley line collective power as well as charge and discharge power of the on-board lithium ion rechargeable battery, the hybrid energy providing and regenerating technology is achieved. The running test results show a maximum regenerative ratio of 44%, which is top class value in an electric railway system