London (Platts)--23Jun2008

The UK government will launch this week a GBP100 billion ($200 billion)
renewables strategy, Prime Minister Gordon Brown confirmed Sunday. Brown said
the GBP100 billion investment is required for Britain to reach its EU target
of sourcing 15% of its energy from renewables by 2020.

Speaking at the international oil summit in Jeddah, Brown highlighted the
opportunities that oil-producing countries have to invest in renewable energy
technology, as well as in technologies such as carbon capture and storage and
in nuclear power generation, in countries such as the UK.

Brown said that much of the world was determined to reduce its dependence
on oil, adding that by 2050 the world would need 1,000 nuclear power stations,
700,000 new large wind turbines, and a 600% increase in solar, biomass and
hydro-power.

In what he described as a "new deal" for oil producers, Brown offered the
opportunity for the countries to use some of $3 trillion generated by oil
revenues to invest in renewable energy projects worldwide, revealing that the
UK was already in talks with the Abu Dhabi Investment Authority and the Qatari
Government to explore investment opportunities in British energy projects.

Brown was speaking in advance of the government's green energy program,
due to be unveiled Thursday, which will attempt to reduce the UK's dependence
on fossil fuels.

At the heart of the GBP100 billion strategy is a proposal to encourage
householders to generate their own power, the London Sunday Times reported.

Householders will be able to sell back surplus electricity at premium
prices to the National Grid, and will be offered financial incentives to fit
their homes with solar panels and wind turbines.

Other proposals include the construction of 3,500 onshore wind turbines,
and the planting of woodland and crops to be burnt in a network of smaller
power stations.

The renewable revolution detailed in the consultation document could
create 160,000 jobs and cost GBP100 billion over 12 years, the Sunday Times
says.

The UK's 15% target is a share of the total EU target of gaining 20% of
energy from renewables by 2020. The share is calculated on nations' existing
levels of renewable power and GDP.

Currently, the UK sources around 2% of its energy from renewables.
--James Allen, james_allen@platts.com