Thousands of new wind turbines could be built across the UK as part of a £100bn investment in renewable energy that could create hundreds of thousands of new "green collar" jobs, Gordon Brown announced today.

The prime minister unveiled what he described as a "green revolution" and "the most dramatic change in energy policy since the advent of nuclear power".

He wants to build up Britain's clean power supply in order to reach the EU-imposed target of producing 15% of the country's energy from renewable sources by 2020. This will require £100bn of investment from the private sector, which the government will encourage with financial incentives due to be announced later by the business secretary, John Hutton.

In a speech to an energy summit at the Tate Modern art gallery in central London, Brown said that the North Sea, which has passed its peak in terms of oil and gas supplies, will be turned into "the equivalent for wind power of what the Gulf of Arabia is for oil". Wind turbines will also be built inland, but with sensitivity towards local communities.

Householders will be encouraged to reduce their bills through energy-saving incentives due to be announced later this summer, said Brown. Within a decade he said he wanted every householder able to do so to fit loft or cavity wall insulation, install low-energy light bulbs, and use low-energy consumer goods.

The government will also shortly begin a new advertising campaign showing people what steps they can take to reduce their energy and fuel bills – steps such as turning appliances off rather than leaving them on standby, and fitting new shower heads.

In the autumn, said Brown, the government will consult on a new plan aimed at changing the way in which energy companies operate – encouraging them not to supply ever more units of electricity and gas, but to make profits from reducing, not increasing, demand.

"This is a green revolution in the making," Brown said. "It will be a tenfold increase on our current deployment of renewables, and a 300% increase on our existing plans: the most dramatic change in our energy policy since the advent of nuclear power."

He said it would mean that by 2020 renewables would account for over 30% of electricity supply, 14% cent of heat supply and up to 10% cent of transport fuels.

Brown estimated that the renewables programme would generate around 160,000 jobs, and plans for new nuclear power stations around 100,000, with many more created from energy-saving measures.

The prime minister also said that he was prepared to take on public opinion over green taxes, insisting that a low-carbon society would not emerge from a "business as usual" approach.

"It will require real leadership from government - being prepared to make hard decisions on planning or on tax for example," he said.

"It will mean new kinds of consumer behaviour and lifestyles. And it will demand creativity, innovation and entrepreneurialism throughout our economy and our society."

The shadow business secretary, Alan Duncan, said that after a series of "painful and reluctant U-turns", the government had come round to the Conservatives' vision of a greener Britain.

He criticised Brown for launching a consultation on energy after a "decade of dithering".

"Gordon Brown must now translate these words into action. If we don't grasp this opportunity now, we'll still be playing catch-up in 20 years," said Duncan.

The Liberal Democrats' environment spokesman, Steve Webb, said that, with Britain near the bottom of the European renewables league table, he found it hard to believe Brown's talk of a "green revolution".

He said: "The fundamental problem is that Brown doesn't do 'green'. He would rather urge oil producers to extract more oil than invest in technologies that will actually save CO2 emissions now.

"When the government has failed so lamentably to take a political lead in the last 11 years, why should we believe the coming years will be any different?"

Greenpeace described the new strategy as "visionary", but the environment group warned that ministers had promised much before and had so far failed to deliver.

John Sauven, the group's executive director, said: "If the government actually means it this time, then Britain will become a better, safer and more prosperous country. We could create jobs, reduce our dependence on foreign oil and use less gas, and in the long run our power bills will come down. But it won't happen without real government action."

Philip Wolfe, the executive director of the Renewable Energy Association, said: "Government have produced an energy strategy, not just an electricity strategy. This shows a new maturity in approach, getting away from the soundbite policy-making of the past and looking carefully at the role of renewables in buildings, heat, and transport.

"The key missing factor is a greater sense of urgency. We have only 12 years left and government still wants to use two of those talking about it."

Martin Temple, the chairman of the Engineering Employers' Federation, said: "Moving to a low-carbon economy will create significant business opportunities for the UK, but we will need to move quickly and decisively. Businesses around the world are alive to the massive opportunities and a number of governments are making their exploitation a national priority."