erneuern
to replace
To replace something old, worn out, or broken with something new.
Wir müssen die alten Reifen am Auto erneuern.
We need to replace the old tires on the car.

to renew
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to replace
To replace something old, worn out, or broken with something new.
Wir müssen die alten Reifen am Auto erneuern.
We need to replace the old tires on the car.

The word is made up of the prefix 'er-', the adjective 'neu' (new), and the ending '-n'. It literally means 'to make new' and is an inseparable verb.
Die Stadt will den alten Marktplatz komplett erneuern.
The city wants to completely renovate the old marketplace.
The object of the verb makes the meaning clear. A physical object is replaced ('das Dach erneuern' — to replace/renew the roof), a document is extended ('den Pass erneuern' — to renew the passport), and a statement is repeated ('die Kritik erneuern' — to renew the criticism).
Die Firma erneuerte ihr Angebot nach den Verhandlungen.
The company renewed its offer after the negotiations.
In the sense of 'ersetzen' (to replace), 'erneuern' (to renew/replace) is often used for building parts or worn-out things in a house. Typical phrases are: 'das Dach erneuern' (to replace/renew the roof), 'die Fenster erneuern' (to replace the windows), 'die Heizung erneuern' (to replace the heating system), or 'die Leitungen erneuern' (to replace the pipes/wiring).
Nach dem Wasserschaden mussten wir den ganzen Fußboden erneuern.
After the water damage, we had to replace the entire floor.
When it comes to official documents, the construction 'etwas erneuern lassen' (to have something renewed) is often used. This emphasizes that you are not carrying out the renewal yourself, but that an authority or service provider is doing it.
Ich muss dringend meinen Führerschein erneuern lassen.
I urgently need to have my driver's license renewed.
to replace / reimburse
'ersetzen' and 'erneuern' can both mean that something old or broken is replaced by something new. 'ersetzen' emphasizes the substitution: one thing or person takes the place of another. This can also happen with people or individual parts. 'erneuern' emphasizes more strongly that something is made new, valid, or up to date again, for example an ID, a contract, or an old pipe. Learners may confuse the words because renewing something often also involves replacing something. As a guide: 'ersetzen' is more about the question 'What takes its place?', while 'erneuern' is more about 'What is made new or valid again?'

Wegen des Wasserschadens erneuert der Handwerker die alten Rohre.
Because of the water damage, the tradesman is replacing the old pipes.
Die Firma ersetzt den kaputten Drucker durch ein neues Gerät.
The company is replacing the broken printer with a new device.