Preheat oven to 350.
In a mixing bowl stir together flour, cinnamon, baking soda, salt, nutmeg, and baking powder; set aside. In a mixing bowl beat together sugar, shredded zucchini, and egg. Add oil and lemon peel; mix well. Stir flour mixture into zucchini mixture. Gently fold in chopped nuts.
Turn batter into a greased 8x4x2 inch loaf pan. Bake at 350 for 55-60 minutes or till a wooden pick inserted near center comes out clean.
Cool in pan 10 minutes. Remove from pan cool thoroughly on a rack. Wrap and store loaf over night before slicing.