As Michael clashed with Peter in the realm of hell, he couldn't help but notice the difference in how energy and cultivation worked in this place. His power was different here; he felt stronger but wasn't at his full Half Celestial power level. The darkness that surrounded them was the source of his strength. As the god of darkness and a newly minted Half Celestial, his body was now able to harness the darkness around him and turn it into his own power.
In this realm, there was little to no celestial or arch energy, which meant that the hell walkers' power was solely dependent on their hatred and the depth of their torment in the pits of hell. The more hatred they held, the more powerful they became. Peter's hatred toward Michael knew no bounds, and his power was almost on par with Michael's in the realm of hell. If Peter were to fight Michael in his own world, Michael could have easily disposed of him with a snap of his fingers.