In this paper, we describe a simulation study aimed at investigating whether a momentary limitation of the tram power-output can be effective in reducing current overload, while maintaining the tram performance at an acceptable level. The study was performed on a single-fed tram section in Gothenburg, Sweden. The simulation results indicate that an adaptive power output limitation, which is only activated when the current and current derivative is above certain limits, is effective in reducing current peaks, while still maintaining required tram performance. Thus, this method could be used to reduce or eliminate power failure on the tram net, without causing unacceptable tram delay.