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. Örsted disclosed in its 2025 annual report that it has set aside provisions in anticipation of the ruling. 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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