Light rail vehicles (LRVs) are increasingly in demand to sustainably meet the transport needs of growing populations in urban centres. LRVs have commonly been powered from the grid by direct-contact overhead catenary systems (OCS); however, catenary-free direct-contact systems, such as via a “hidden rail”, are popular for new installations. Wireless power transfer (WPT) is an emerging power transfer (PT) technology for e-transport with several advantages over direct contact systems, including improved aesthetics and reduced maintenance requirements; however, they are yet to be utilised in LRV systems. This paper provides a review of existing direct-contact and wireless PT technologies for LRVs, followed by an in-depth critical assessment of inductive power transfer (IPT) and capacitive power transfer (CPT) technologies for LRVs. In particular, the feasibility and advantages of CPT for powering LRVs are presented, highlighting the efficacy of CPT with respect to power transfer capability, safety, and other factors. Finally, limitations and recommendations for future works are identified.