Örsted braces for landmark UK Supreme Court ruling on wind farm survey tax with sector-wide implications for renewable energy project costs

Örsted, the Danish offshore wind developer, is awaiting a landmark judgment from the UK Supreme Court — due to be handed down on 15 April 2026 — in a long-running tax dispute with HM Revenue & Customs (HMRC), the UK's tax authority. The case concerns Örsted's West of Duddon Sands offshore wind project (108 turbines off Barrow-in-Furness) and turns on whether pre-construction survey costs qualify as expenditure 'on the provision of plant' for capital allowances — the UK's tax-relief regime for capital expenditure on plant and machinery. HMRC appealed a lower court ruling in Örsted's favour, bringing the matter to the Supreme Court. The outcome will establish the tax treatment of development-phase survey expenditure not only for offshore wind, but for all types of renewable energy projects — including solar farms — during their pre-construction phase. The judgment is directly relevant to the economics of the UK's offshore wind pipeline: survey costs are a material element of pre-final investment decision (pre-FID) expenditure, and a ruling against Örsted would increase effective tax costs for wind and solar developers, potentially affecting project viability calculations and contract-for-difference (CfD — a government revenue support mechanism for renewable generators) bid pricing.

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