Greetings, welcome to the Colbún fourth quarter 2018 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Miguel Alarcón, Deputy CFO. Thank you. Please go ahead.
Hello, everyone, welcome to Colbún's 2018 year-end earnings review call. My name is Miguel Alarcón. I am the Deputy CFO of the company, joining me today is Carolina Plasser from the investor relations team. I hope that you have received our earnings report and an earnings review presentation that you have prepared to complement the analysis of our figures. Otherwise, you can download them at the investor section of our website. Agenda for today on slide two is as follows. We will begin talking about the highlights of 2018 to analyze in detail this year's results. After that, we will provide an update of our growth opportunities. Following the presentation, there will be time to participate in a Q&A session. Now, please go to slide number three to review highlights of this year.
First, as of December of last year, Colbún has signed new medium-term power purchase agreements with unrelated customers for approximately 1,400 GWh per year. In accumulated terms, the company has contracted more than 3,000 GWh of its generation with new clients. Second, regarding the incorporation of projects of renewable energy from variable sources, at the end of 2018, Colbún has been able to complete a portfolio of locations for seven wind and solar projects, which are in early stages of development for approximately 1,800 MW. In addition, in June of last year, Ojos de Agua photovoltaic solar plant started its commercial operations. As a recognition to the company in matters of sustainability, in September of last year, Colbún was selected to list for the third time in the Dow Jones Sustainability Chile Index, second time in the Dow Jones Sustainability Index MILA in its 2018 versions.
Finally, during 2018, the company developed a detailed plan of efficiencies focused on fixed costs, which will translate to savings for approximately $20 million per year from 2019 and onwards. Now, please go to slide number four to review the main consolidated figures of the company. Consolidated EBITDA for 2018 reached $684 million, consolidated net income reached $230 million. Financial investments totalized $788 million, net debt to EBITDA ratio is at 1.2 times. The average US dollar long-term financial debt interest rate is 4.5%. Colbún has a total installed capacity of 3,893 MW, comprised of 2,250 MW in thermal units, 1,634 MW in hydraulic units, and nine megawatts from the photovoltaic power plant, Ojos de Agua. Now, I will turn to Carola, who will speak about the main drivers of last year's results.
Thank you, Miguel, and hello to everyone. Please move to slide six for a review of the main figures of the year, starting with the consolidated EBITDA analysis. Consolidated EBITDA for 2018 reached $684 million, 1% lower than the EBITDA of $692 million in 2017. The lower EBITDA is mainly explained by lower sales to regulated customers, higher costs of raw materials and consumables due to an increase in the price of consumption of gas and coal, and lower EBITDA contribution from our affiliate company, Fenix. These effects were partially offset by higher sales to unregulated customers and higher hydroelectric generation. Now, please continue to slide seven for physical sales and generation balance analysis in Chile.
Total generation of the year slightly increased by 2% compared to 2017, reaching 13 TWh, mainly due to higher hydro generation and renewable energy from variable sources, partially offset by a decrease in diesel and gas generation. Physical sales during the year reached 13 TWh, 3% higher than previous year, mainly explained by higher sales to unregulated customers. Spot market balance during 2018 recorded net sales for 1.2 TWh, lower compared with net sales for 1.3 TWh in 2017. During the year, 100% of the company's commercial commitments were supplied with cost-efficient base load generation. Now, please continue to slide eight to analyze Chile's EBITDA for 2018. First, revenues for 2018 reached $1,370 million, increasing 1% compared to the previous year, mainly due to higher sales to unregulated customers and higher hydroelectric generation.
Partially compensated by lower revenues from transmission tolls due to a change in methodology in the collection of these tolls, which, as of January 2018, are paid directly to the owner of the transmission facilities, and lower sales to regulated customers. Raw materials and consumables used totaled $617 million, increased 1% compared to the previous year, mainly explained by higher costs of gas and coal generation. Without, the EBITDA in Chile increased by 2%, reaching $648 million. Now, please continue to slide nine for the consolidated non-operating income and net income analysis. Non-operating income in 2018 recorded losses of $118 million, 19% lower than the loss of $146 million presented in 2017.
The lower loss is mainly explained by lower provisions for asset impairment, lower provisions due to the revaluation of lands owned by HidroAysén, due to its accounting at liquidation value and higher financial income due to higher rates of return on cash surpluses. Tax expenses amounted to $98 million, higher than the tax expenses of $34 million in 2017. The higher tax charge is mainly explained by the recognition of a deferred tax asset as a result of the cancellation of the HidroAysén hydroelectric project, and the tax profit registered in 2017 in Fenix as a result of the appreciation of the Peruvian sol during the period. The company recorded in 2018 a net income of $230 million, lower than the net income of $289 million of 2017.
The decrease is mainly explained by the higher tax expenses, higher depreciation and amortization costs, mainly due to minor maintenances and projects performed in 2018, partially offset by the lower non-operating losses. Continuing with this conference call, please go to slide number 11, where Miguel will give you an update on the status of our growth opportunities.
As we have mentioned before, we continue searching for growth opportunities in Chile, Peru, Argentina, and Colombia in order to maintain a leading position in the power generation business and to diversify our sources of income. Regarding our growth opportunities in Chile, we have focused our growth in renewables. This is hydro, solar, and wind, based on three pillars. One, developing a pipeline of projects. Although the power market is balanced in terms of efficient supply and demand, in a scenario of low growth in power demand and significant pipeline of renewable projects, our goal is to maintain a relevant position in the sector, for which it is very important to have a diversified portfolio of projects, both in terms of technology and location. As mentioned before, the company is taking relevant steps towards the goal of incorporating 4,000 MW of renewable capacity in the next decade.
These assets constitute a very good complement for Colbún's existing generation matrix, which will allow us to provide our customers with a supply of renewable, competitive, continuous, and long-term energy. For more details on this topic, please refer to the latest earnings report available at our website. Second, the company does not rule out the purchase of renewable assets in operation. Finally, acquiring energy from third parties. In this context, we have signed contracts with ACCIONA for 95 GWh per year and with Total and SunPower for 500 GWh per year. This concludes Colbún's 2018 results review. Thanks for listening, now we're open to answer your questions.
Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue, and you may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Again, it is star one to ask a question at this time. I will pause for a few moments to see if there are any questions. Again, that is star one. It seems that we have no questions at this time. Are there any closing comments you would like to make?
Yes. Sure. Hello?
Yes, go ahead.
Okay. I think with that, we conclude this conference call. Thank you everyone for joining, and hope to see you again for the next quarter review. Have a great weekend, and bye-bye.
Thank you. This concludes today's teleconference. You may disconnect your lines at this time, and thank you for your participation.