This paper presents an innovative design for a low-speed, direct-drive, axial-flux permanent-magnet (AFPM) generator with a coreless stator and rotor that is intended for application to small wind turbine power generation systems. The performance of the generator is evaluated and optimized by means of comprehensive 3D electromagnetic finite element analysis. The main focus of this study is to improve the power output and efficiency of wind power generation by investigating the electromagnetic and structural features of a coreless AFPM generator. The design is validated by comparing the performance achieved with a prototype. The results of our comparison demonstrate that the proposed generator has a number of advantages such as a simpler structure, higher efficiency over a wide range of operating speeds, higher energy yield, lighter weight and better power utilization than conventional machines. It would be possible to manufacture low-cost, axial-flux permanent-magnet generators by further developing the proposed design.