The recent environmental protection trend requires more strict energy saving, therefore every transportation system should reduce energy consumption to the minimum value. High-efficiency operation system, energy saving and $CO_2$ emissions shall be addressed as important issue in railway system. These issues are the most essential factors of railway, compared to major public transportation system. Recently, saving energy in the electric railway system has been studied. For such new energy saving, the energy storage system is considered for saving energy. Energy saving is possible by efficient use of regenerated energy. Regenerated energy is recycled amongst vehicles by mean of charge and discharge corresponding to powering and braking of electric vehicle operations. This energy saving contributes to cut $CO_2$ to reduce greenhouse gas emissions. Recycling regenerated energy demonstrate significant effect on peak cut of consumption energy in railway substation. Absorption of excess energy avoids regeneration failure due to high traction voltage. Therefore, the energy storage system is needed to be adopted to use regeneration energy when the vehicle is braking.