Battery Trains by Škoda: A Green Revolution or a Scandal Waiting to Happen?

Billed as a breakthrough in eco-friendly rail transport, Škoda's battery trains are already facing controversy—no-bid contracts and legal challenges.

In 2022, the Moravian-Silesian Region took a bold step by signing a direct contract with České dráhy (ČD) to handle regional rail transport. The problem? No public bidding process took place, sparking serious concerns about transparency. The contract was finalized just before a change in European regulations, which would later ban such direct awards.

According to iDNES.cz, the region never even considered other railway operators before awarding the deal to ČD. And the total cost? A staggering EUR 717 million.

"We believe this contract is not beneficial for the region. The entire idea is risky and only serves to benefit České dráhy and Škoda Transportation," said Zuzana Klusová, a representative of the Pirate Party.

A multi-billion-dollar contract awarded without a competitive tender—and what does it include? Besides standard rail services, the deal introduces an eco-friendly innovation: 19 battery-powered trains (BEMU) for non-electrified routes.

Škoda and České dráhy’s Battery Train Experiment

This is where more red flags emerge. At the time of the contract, České dráhy did not own a single battery-powered train. Yet, the first unit was scheduled to start operations by December 2024. Instead of purchasing new battery trains, ČD decided to modify existing RegioPanter electric units, adding roof-mounted batteries to create a hybrid model.

While this approach seemed practical, the way it was implemented drew sharp criticism. ČD signed another contract with Škoda Group (Škoda Transportation/Škoda Vagonka) for the train conversions—again, without a public tender.

"České dráhy are giving Škoda Group an unfair advantage when they should be prioritizing the interests of taxpayers and fair competition. This deal gives Škoda a significant edge in securing future contracts. Other manufacturers might have delivered these battery-powered trains at a lower cost, which an open and transparent bidding process could have proven. ČD’s leadership insists that only Škoda can deliver within their timeline, but they fail to explain why this sudden rush is even necessary," stated Zuzana Klusová from the Moravian-Silesian Regional Assembly.

Legal Disputes Were Inevitable

The controversy quickly escalated into a legal dispute. Petr Šlegr, a former supervisory board member of České dráhy, commissioned a legal review from MT Legal s.r.o.. Their findings were clear: modifying existing trains under an old contract with Škoda Transportation was not legally viable.

Backing this claim, the Technical University of Berlin released an analysis in January 2023, stating that the originally ordered trains and the modified battery units were fundamentally different. ČD argued that simply adding batteries to an electric train logically turned it into a BEMU, but legal experts saw it as a far more complex issue.

The case even caught the attention of the Czech Competition Authority (ÚOHS), which fined České dráhy for their procurement practices. However, the penalty was later revoked, and the matter was sent back for further review.

The Public Tender That Left Only One Player Standing

While the first four BEMU trains were converted without a tender, the remaining 15 units went through a public procurement process. Competing manufacturers included Škoda Group, CAF, Stadler, Siemens, and Alstom.

In the end, only Škoda remained in the race. The company won the contract with a bid of EUR 6.7 million per train, bringing the total contract value to EUR 139 million. Almost one-third of this amount covers a 10-year full-service package.

The first four modified BEMU units have been running since December 2024 on key regional routes. The remaining 15 battery trains are expected to arrive by 2026.

Source: www.pirati.cz, //www.idnes.cz, eur-lex.europa.eu