Heavily polluting 'diesel farms' to make millions from subsidies, IPPR warns

Thinktank criticises subsidy cuts for clean renewable energy while state aids profits for 'dirtiest form of energy generation available'

Owners of heavily polluting diesel generators stand to make "sky-high" profits under a government energy regime that has slashed subsidies for wind and solar, a report warns.

The annual capacity market auction - under which power suppliers bid for contracts to feed electricity into the grid - is due to begin on Tuesday. Calculations by the Institute for Public Policy Research (IPPR) suggest "diesel farm" owners can expect to make millions if they succeed with bids to supply 1.5 gigawatts.