Power Generators spawn near mountains in the wilderness. They spawn Controllers and Iron Golems. When you look closely on the radar map in-game, you can see a white spot where a Power Generator has appeared.

To stop the spawning, the Power Generators have to be destroyed. Each Power Generator destroyed will lower the spawn of Controllers and Golems in that area. Once all three (maximum) Power Generators have been destroyed, the spawn stops.

To destroy the Power Generator, you have to access the Generator Control Panel that is attached to the Generator. It's the grey and white checkered panel you see on the right side. The control panel is a puzzle. You have to find a path from one corner of the panel to the opposing corner. You have to find the path by trial and error, using the four red colored directional controls. Every time you pick the wrong direction, you will be attacked by lightning coming from the Generator and you "spasm from the electric shock". These attacks do quite a bit of damage, and may very well kill you. The attacks come in waves, with a 5 second pause inbetween. The first hit does 60 or more damage, the following three hits 10 damage each. During the attack wave you cannot move. You can operate the Control Panel while hidden, but the electric shocks will unhide you.

If your lockpicking skill is high enough (GM ?) you will see an extra option on the control panel that says "Attempt to Decipher the Circuit Path. Clicking this button will check your lockpicking skill, and if you succeed (a 75% chance for a GM lockpicker), you will see a green gem that shows the next correct position of the puzzle.

When the Power Generator is destroyed it will leave behind several piles of Shadow Iron Ore and you will receive some diamonds and Arcane Gems directly into your backpack. A 3x3 grid will give you 3 Arcane Gems and 3 diamonds, a 4x4 grid will give you 4 Arcane Gems and 4 diamonds and so on..