I think that you are actually deactivating the power cells in the level. It's hinted by the fact that the lights go out in the area where you remove the power cell.
The Drifter (The Wizard) is part of an artificial species, made alongside the rusted titans that you see (clue: the green forest has blue people + a titan vs the raccoon people)
The four species (Otter people (E), Raccoon people (W), Bird people (N), and Lizard people (S) worked together and
harnessed the power of the Jackal god and created the Perfect Cell (no relation), but in doing so, the power ran rampant. The perfect cell gained control over the technology of old and continued to construct robots, following its original programming. The Drifter is suffering from what you could
consider a submission protocol created by the perfect cell, which manifests itself as Judgement (the big spooky black ooze with the pink diamond for a face).
YES. Yo, if any y'all reading this like Dark Souls, Furi, and/or 2d Zeldas, you'll probably like Hyper Light Drifter. Won't lie though, while I absolutely adore this game, Jo ain't joking about the plot being... Difficult to tease out.
The game is basically a quest to find a cure for your disease and your malefic visions. Just remember to google about the world's lore after finishing the game (unless you're prepared to decipher the game's alphabet). It's pretty interesting stuff.
"The rejects tried to destroy the world and made you sick" That's actually pretty much it. The premise is as simple as it can be. On the other hand, the true lore about the real meaning of the world's current state and the identity of things like the black shadow... those are well hidden.