LONDON - Red Bull is hoping Renault's revamped engine will give it the power to challenge champion Mercedes in a new-look Formula One championship this season.

"It's a brand new engine this year, a change of philosophy," team principal Christian Horner said on Monday.

"Renault had a big winter. We're hoping for a step up in performance, and then hopefully we can really give Mercedes and Ferrari a hard time."

Red Bull won twice last season to finish runner-up in the constructor standings.

Dutch teenager Max Verstappen and Australian Daniel Ricciardo - both retained by Red Bull this season - were the only drivers apart from Mercedes' Lewis Hamilton and now-retired world champion Nico Rosberg to win in 2016.

The rule changes mean cars are expected to lap faster on wider tires, and Horner predicts a development battle from the start of the season in Australia on March 26 all the way to Abu Dhabi on Nov 26.

"It's going to be fascinating to see who's got it right and who's got it wrong," said the Briton.

"You'll see big increments early on because the regulations are pretty immature. I think there'll be low-hanging fruit to make sizeable steps. That's going to push every department to try to outwit, outsmart, out-develop and out-produce our rivals."

Red Bull will showcase its new car on Sunday, with testing in Barcelona on Monday.

Horner said Red Bull is on schedule, "proceeding like a swan while paddling frantically beneath the surface".

"It's exciting to see the car break cover," he said.

Agence France-Presse