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An improved method is used capable of calculating any form of generator transients. In this method, based on a two-dimensional model, solid conducting parts of the rotor are represented by multiple thin conducting layers. The resulting non-linear differential equations are solved numerically for the recently proposed new rotor arrangement with independently rotatable (free) outer rotor. The results are compared with the previously accepted arrangement having rigid connection of outer to inner rotor showing that the free outer rotor arrangement greatly relieves the inner rotor of transient torques and that its steady-state stability, although inferior to the rigidly fixed outer rotor configuration, is nevertheless quite adequate: it compares very favourable with that of the conventional generator, being markedly superior on underexited operation.