Earlier quoted context omitted.
Temporary negative prices have been caused by the renewable generation which exceeded the grid demand at the time, which then evolved into the nasty feedback loop caused by the reaction of renewable generation to those conditions. You simply do not get such situation with traditional generation, it's the direct consequence of the intermittent nature of renewables and its high ratio in the total generation. Also, have…
So an incredibly cheap source of supply exceeded the demand, and the market rules and some trips caused cascading failures. Why is the problem the cheap source of supply rather than the market rules and incentives that made everything act the way it did? Your comment suggests move back to good ol' expensive fossil generation instead of looking at how to bring the market rules up to date with evolving technologies.
Looks like there are a multitude of schemes of various vintages in Spain, which tl;dr basically give you a guaranteed price per MWh you generate. So imagine you get a 100eur/MWh subsidy for a (legacy) solar plant. The market price is €-20/MWh. You will still continue to produce power until the price reaches -100MW/h. Even worse are some contracts for difference (poorly thought through) which give you a guaranteed price regardless of what the market is at. So even if the price was -1,000eur/MWh the government or grid operator would still give you your €50/MWh (and the subsidy would be 1,050/MWh!).
The problem is if you reform this (and it is happening worldwide) solar is much, much less appealing. Because suddenly your solar plant which was getting (say) a guaranteed 70/MWh all year round suddenly does not make money for 6 months of the year at least at peak sun hours.
On top of all this, you have a lot of domestic solar in places like Spain. The grid operator _cannot_ control these assets in nearly all circumstances. They will continue to dump power into the grid regardless of the market price. This again will change but it requires an awful lot of work to retrofit invertors with remote control capability OR a lot of public backlash for charging end customers who bought solar in "good faith" now getting hit with peak time negative prices (so they change their behaviour).
I think my core message would be _any_ negative power prices is a sign of market failure. Acceptable in rare extreme occurrences, but the fact most of europe has highly negative prices very frequently is telling you the grid and market design is not able to handle what is going on.