UK ENERGY LAW AND OFFSHORE AND MARITIME ENERGY EXPANSION

INTRODUCTION

Offshore and maritime energy expansion has become a major element of United Kingdom energy law, particularly through offshore wind, floating wind, tidal technologies, subsea electricity infrastructure and associated offshore transmission. The legal framework must reconcile rapid renewable-energy development with navigation, fisheries, marine biodiversity, seabed rights, environmental assessment and electricity-system requirements. UK offshore projects therefore operate under overlapping regimes of energy law, planning law, marine licensing and environmental regulation.

The Government’s National Policy Statement for Renewable Energy Infrastructure (EN-3), 2025 recognises offshore wind as an important component of renewable infrastructure and establishes the policy framework for major consenting decisions.

SEABED RIGHTS AND OFFSHORE DEVELOPMENT

An offshore developer cannot simply construct installations in UK waters. Rights over the seabed are fundamental.

The Crown Estate manages the seabed around England, Wales and Northern Ireland out to the territorial limit, while Crown Estate Scotland manages the Scottish seabed. Under the Energy Act 2004, rights associated with renewable-energy development can also extend into the Renewable Energy Zone beyond territorial waters. Developers normally require an appropriate seabed lease before constructing offshore structures or laying cables.

This leasing framework allows government and Crown Estate bodies to coordinate expansion while controlling spatial conflicts involving shipping routes, defence interests, fisheries and environmental protection.

MARINE LICENSING AND CONSENTING

The Marine and Coastal Access Act 2009 establishes the principal marine-licensing regime for English waters. Construction of offshore energy infrastructure, seabed works, dredging, depositing materials and many cable activities can require a marine licence.

Following changes introduced through the Planning and Infrastructure Act 2025, generating capacity alone no longer determines the consenting route for an offshore project. Depending upon its location and characteristics, a project may proceed through a Marine Management Organisation licence, consent under section 36 of the Electricity Act 1989, or the nationally significant infrastructure regime, which may incorporate a deemed marine licence.

Large projects may therefore combine planning consent, marine licensing and environmental conditions within a single Development Consent Order.

ENVIRONMENTAL AND MARINE PROTECTION

Expansion is subject to environmental impact assessment, habitat protection and marine-planning requirements. Section 58 of the Marine and Coastal Access Act requires public authorities making relevant authorisation decisions to act in accordance with applicable marine policy documents unless relevant considerations indicate otherwise.

Developers must consider impacts on protected habitats, seabirds, marine mammals, fisheries, underwater archaeology and cumulative effects from multiple offshore projects.

CASE LAW – R (SUFFOLK ENERGY ACTION SOLUTIONS SPV LTD) v SECRETARY OF STATE FOR ENERGY SECURITY AND NET ZERO [2024] EWCA Civ 277

Facts

The Secretary of State granted Development Consent Orders for the East Anglia ONE North and East Anglia TWO offshore wind farms, including offshore generation infrastructure, export cables and substantial associated onshore works. A campaign organisation challenged those decisions through judicial review.

Legal Issue

The court considered whether the Secretary of State had lawfully assessed the environmental and planning consequences of the projects and their associated infrastructure.

Judgment

The Court of Appeal rejected the challenge and upheld the development-consent decisions.

Legal Principle/Ratio

Decision-makers may evaluate major offshore energy schemes within the statutory planning framework provided that material environmental effects, policy requirements and relevant alternatives are lawfully addressed.

Significance

The case demonstrates that offshore expansion can proceed at very large scale, but consenting decisions remain subject to rigorous judicial review.

CASE LAW – ORSTED WEST OF DUDDON SANDS (UK) LTD v HMRC [2026] UKSC 12

Facts

Offshore wind companies incurred substantial expenditure on surveys and studies undertaken when preparing environmental assessments necessary for proposed offshore wind projects. The dispute concerned the tax treatment of that expenditure.

Legal Issue

The Supreme Court considered whether particular development and survey expenditures qualified for capital allowances under taxation legislation.

Judgment

The Court analysed how expenditure connected with developing offshore generation assets should be characterised for capital-allowance purposes.

Legal Principle/Ratio

Offshore energy development involves legally significant preparatory expenditure, and its tax treatment depends upon the statutory relationship between that expenditure and the relevant generating assets.

Significance

The case shows that maritime energy expansion is governed not only by environmental and planning law but also by the financial and taxation framework supporting capital-intensive offshore infrastructure.

CONCLUSION

UK offshore and maritime energy law combines seabed leasing, marine licensing, electricity consent, environmental assessment, planning control and judicial review. As offshore wind, floating technologies and interconnected maritime infrastructure expand, the central legal challenge is enabling rapid low-carbon investment while preserving marine ecosystems, navigation and accountable public decision-making.