I am running a local development instance of SP Server in a VM. Is there any way to renew the eval license?
You should definitively grap a msdn / technet licence for your development environments (it will pay in the long run).
In the meantime, you can backup any relevant web application / site collection / custom development / configuration and then reinstall from scratch the VM and redeploy your backup on it afterward.
I saw the same just a few days ago in a dev environemnt. Solved it by using this method: