Geothermal energy is a recognized renewable resource in the present scenario, with over 30 nations generating electricity and 88 using it for heating and heat pumps. Despite its substantial geothermal potential, India has yet to develop this resource because of limited geological exploration, reservoir characterization, and technological constraints. The Indian Himalayas host over 300 geothermal fields, offering a promising avenue for sustainable energy deployment in remote regions. This study evaluates the geothermal potential of the Badrinath geothermal field in the northwest Himalayas using a volumetric heat estimation method integrated with Monte Carlo simulations, addressing uncertainties in subsurface temperature distribution, heat capacity, and fluid recharge. Results indicate a maximum thermal power potential of 39 MWt and an electrical generation potential of 3.0 MWe, demonstrating its viability for small-scale power production. Furthermore, the design of a district heating system for the guesthouse is investigated, with particular attention to optimizing thermal energy transfer efficiency from the geothermal spring to the radiators. Despite extreme winter temperatures reaching − 10 °C, our findings confirm that geothermal water can be effectively utilized for heating applications without endangering the structural integrity of heat exchangers and distribution pipelines. This study represents the first systematic assessment of the Badrinath geothermal field, providing insights for future geothermal energy utilization in the Indian Himalayas.